Michelle Elliot – Partner at FRP Advisory

This rise was primarily driven by an increase in compulsory liquidations, which accounted for 72 cases. The remaining insolvencies included 56 Creditors’ Voluntary Liquidations (CVLs) and five administrations. There were no Company Voluntary Arrangements (CVAs) or receivership appointments recorded.

The overall company insolvency rate in Scotland for the 12 months leading up to May 2025 stood at 51.8 per 10,000 companies on the effective register, a slight decrease of 1.6 from the preceding 12-month period.

Michelle Elliot, restructuring advisory partner at FRP in Glasgow, said: “This latest rise in corporate insolvencies reflects the pressure many businesses are still under as fragile demand continues to combine with the effect of rising costs.

“Even with further interest rate cuts on the horizon, the reality is that insolvency levels are likely to stay elevated for some time yet, particularly for firms carrying unsustainable levels of debt.

“Sectors like hospitality and tourism are entering what should be some of their strongest trading months. But with continued cost pressures – including the April increases to National Insurance and the National Minimum Wage – many operators are struggling to maintain margins.

“A strong summer could offer some respite. But with footfall and consumer spend remaining unpredictable, directors need to act early, assess their position critically, and take advice before options start to narrow.”