Creditors’ Voluntary Liquidations become the most frequent type of insolvency in Scotland last month
Just as a thunderstorm will clear the air after a prolonged stuffy, warm period; so the latest set of corporate insolvency figures released by the Accountant in Bankruptcy, while still high, show a cooling off from the historic highs they hit last month.
In Scotland last month there were 105 company insolvencies, which although still elevated is 4% lower than the total a year ago and 28 fewer than last month’s total which was the highest monthly total for more than five years.
This is also the fifth month in succession when Scottish business insolvencies totaled over 100.
June’s total was made up of 62 CVLs (up from 56 in May); 37 compulsory liquidations (down from 72); five administrations (no change) and one CVA (up from zero). There were no receivership appointments.
Scotland’s insolvency regime is partly devolved.
The Accountant in Bankruptcy (AiB), Scotland’s insolvency service, administers the Register of Insolvencies which is a publicly accessible statutory register regarding the insolvency of individuals and businesses in Scotland including company liquidations and receiverships.
Between June 26th 2020 and June 30th 2025, there were three restructuring plans and one moratorium in Scotland. Both procedures were created by the Corporate Insolvency and Governance Act 2020.
Scotland had always traditionally seen more compulsory liquidations than any other kind of insolvency process but CVLs overtook them in April 2020 and had remained higher until March 2025. CVLs have once again become the most frequent form last month but this overturns a three-month trend when compulsory liquidations have been higher.
The total insolvency rate in Scotland in the 12 months to June 2025 was 51.6 per 10,000 companies on the effective register. This was down by 0.2 from the preceding 12 months ending in June 2024.
The total number of company insolvencies for the whole of the UK in June 2025 was 2,173 – a monthly decrease of 251.
Chris Horner, insolvency director with BusinessRescueExpert, said: “Many Scottish directors will see the monthly fall with some relief, especially if they’re in the retail or hospitality sectors that are currently benefiting most from this spell of record hot weather.
“The economy is still in tough territory however. Consumer confidence remains stubbornly low, growth is stuttering – with the UK’s GDP dipping again in May.
“June’s unexpected jump in inflation will only serve to continue eroding profit margins and consumer demand. This environment is forcing businesses to fight on multiple fronts.
“Many will likely only be experiencing breathing space after dramatically pairing back costs. Until demand shows a more sustained recovery and input costs ease further, there’s a risk that this reprieve is just a pause rather than a turning point.”
Many directors in Scotland are getting professional insolvency advice so they can implement vital changes to their companies if viable or they can begin voluntary insolvency proceedings if necessary to maintain elements of control over the whole process rather than wait for creditors to act through winding up petitions or compulsory liquidation.
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