Compulsory liquidations overtake voluntary liquidations once again
In March there were 131 company insolvencies registered in Scotland which was 33 higher than last month and 11% higher than the same month a year previously.
The total number of company insolvencies was comprised of 53 Company Voluntary Liquidations (CVLs) (up from 50); 57 compulsory liquidations (up from 39); 18 administrations (up from six) and three receivership appointments (up from two). There were no Company Voluntary Arrangements (CVAs) recorded last month.
Scotland’s insolvency regime is partly devolved.
The Accountant in Bankruptcy (AiB) is Scotland’s insolvency service and 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 26 2020 and March 31 2026, there were three restructuring plans and two moratoriums in Scotland.
Scotland has always traditionally recorded more compulsory liquidations than any other kind of insolvency procedure but they were overtaken by CVLs in April 2020 and typically remained higher until a three month period from March to June 2025 and again this month.
The total insolvency rate in Scotland in the 12 months to March 2026 was 52.3 per 10,000 companies on the effective register. This was up by 0.7 from the preceding 12 months ending March 2025.
The total number of company insolvencies for the whole of the UK in March 2026 was 2,188 – a month-on-month increase of 187.
Chris Horner, Insolvency Director with BusinessRescueExpert, said: “A big uptick in insolvencies in Scotland reflects the growing pressure many businesses are now facing, as multiple headwinds continue to converge.
“Rising oil prices, ongoing supply chain complications and uncertainty and the introduction of new employer costs at the start of the tax year are all forcing difficult decisions around pricing, investment and staff headcounts.
“The priority for management teams must be to make clear, confident decisions underpinned by robust financial information and forecasts as well as solid, professional advice.”
The events of the first months of 2026 show us that nothing can be taken for granted and that circumstances can change very quickly.
This is worth keeping in mind if your business hasn’t made the progress you wanted this year. There is still more than enough time to make the decisions and changes necessary to get to where you want to be – personally and professionally.
Get in touch with us for a free initial consultation about the options you could have to help you create and work through a feasible plan and strategy no matter what your short and medium term goals for the year.
We’ll help you to implement them – the sooner you get in touch, the sooner we can begin.