Michelle Elliot

This was comprised of 44 compulsory liquidations, 62 CVLs, and 9 administrations. There were no CVAs or receivership appointments.

Michelle Elliot, restructuring advisory partner at FRP in Glasgow, said: “High levels of insolvency were already baked into expectations for the Scottish economy this year but the increasing number of firms becoming distressed shows no sign of slowing.

“Indeed, with economic growth remaining weak and many pausing investment in anticipation of a General Election, it’s highly likely that more businesses – many still saddled with post-Covid debts – will struggle under the weight of elevated input and borrowing costs.

“This week’s volatility in the mortgage market will do little for consumer demand and suggests that the base rate is unlikely to fall as quickly as many had hoped.

“So, while important sectors like leisure and hospitality will continue to be among the most affected in terms of insolvencies, few industries remain immune to risk as more firms go through refinancing processes and see a significant increase on their balance sheet.”