The restructuring, turnaround and insolvency trade body’s analysis of data provided by CreditSafe indicated an increase in insolvency-related activities from 106 in September to 124 in October.

October 2025 figures are 9% higher than the same period in 2024, which saw a spike in insolvency activity.

The monthly increase in insolvency-related activity, which includes administrator and liquidator appointments together with creditors’ meetings, is a trend mirrored in the vast majority of the rest of the UK, with a decrease only in Wales.

Emma Widdowson, chair of R3 in Scotland and legal director at Addleshaw Goddard, said: “The rise in insolvency-related activity in Scotland last month is a clear sign of the ongoing pressures businesses are facing.

“A 17% increase from September to October, and figures that are 9% higher than the same period in 2024, underline the challenging economic environment and the strain on company finances ahead of the November budget.

“This trend isn’t isolated to Scotland as we’re seeing similar patterns across most of the UK. Factors such as sustained cost pressures, tighter margins, and the increasing impact of interest rates and inflation continue to weigh heavily on businesses.

“For directors, these figures are a reminder of the importance of acting early if financial distress becomes apparent. Seeking advice from a qualified insolvency practitioner at the first signs of trouble can open up more options and help protect value for creditors and stakeholders.

“R3 members remain committed to supporting and advocating for practical solutions that help businesses navigate these challenges. The profession plays a vital role in the economy, and these statistics highlight just how critical that role is in times of uncertainty.”