In Scotland last month there were 116 company insolvencies, which is one case lower than the total from the same month one year ago. It is an increase on the 105 recorded last month and is also the sixth month in succession that saw Scottish business insolvencies totalled over 100.
July’s total was made up of 68 CVLs (up from 62 in June); 43 compulsory liquidations (up from 37); four administrations (down from five) and one CVA (no change). 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 July 31st 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 again became the most frequent form last month overturning a three-month trend when compulsory liquidations had been higher.
The total insolvency rate in Scotland in the 12 months to July 2025 was 51.4 per 10,000 companies on the effective register. This was down by 2.4 from the preceding 12 months total ending in July 2024.
The total number of company insolvencies for the whole of the UK in July 2025 was 2,211 – a monthly increase of 38.
Chris Horner, insolvency director of BusinessRescueExpert, said: “Conditions aren’t too great overall for Scottish businesses, hence the increase in insolvencies last month.
“Increasing inflation is weakening consumer demand and constricting cashflow for business. While the recent interest rate cut in August will offer some relief, it’s not a quick fix for thin order books, increasing staff costs or the damage from months of economic stagnation.
“Insolvencies will most likely continue at their current level in Scotland for some time and may even increase between now and the end of the year.”
As we get ready to enter Autumn, many directors are looking to make vital and valuable changes to their businesses to end the year in a stronger position.
Get in touch with us to arrange a free initial consultation about what options you could have to help your business be in the best possible shape for the last few months of 2025.