A total of 31 companies in Scotland filed for administration between January and June 2025 – down from 41 during the same period in 2024, according to data from The Gazette Official Public Record.

Despite this apparently positive shift, Scotland still ranked as the ninth most affected UK region, accounting for 4% of all administrations in the first six months of the year.

Nationally, the UK saw 783 administrations – an 11% drop from 2024, but still 3% higher than in 2023, highlighting the fragility of the business environment.

Fiona Pask, partner and head of Scotland at Shakespeare Martineau, said: “While the year-on-year drop in Scottish administrations is encouraging, the overall environment remains extremely challenging for many businesses across the country. Distress hasn’t disappeared – it may simply be taking new forms or being delayed by short-term fixes.”

Retail continues to be the UK’s hardest-hit sector, with a 29% increase in administrations year-on-year – rising from 119 to 153. Hospitality filings across the UK ticked up slightly (80 in 2025 vs 78 in 2024), while construction and manufacturing saw notable declines.

Across the UK, the North West overtook Greater London as the region with the most administrations, with 165 administrations (up 11% from 2024) compared to Greater London’s 158 (a 17% drop).

Ms Pask said: “Scottish retail and hospitality businesses, in particular, are grappling with evolving consumer behaviours, staff shortages and high energy costs. Even though administrations are down, many of these firms are still on a knife-edge.

“While a drop in administration volumes is a positive signal, it should not breed complacency. Many companies are still struggling with cashflow, limited access to funding, and uncertain demand. Now is the time for directors to act – not when crisis hits.

“Early intervention opens the door to more solutions. Directors who engage proactively are far more likely to protect jobs, safeguard value and find a viable route forward.”