Analysis of notices in The Gazette by Interpath shows there were 28 administrations in Scotland in the first six months of 2024, a 15.2% fall against last year’s figures (H1 2023: 33). The most impacted sectors in Scotland were business services with five cases, retail (four cases) and building & construction, and private healthcare (3 cases each).

Nationally, there were 661 administrations in H1 2024, representing a marginal rise on H1 2023 (657 cases). The consumer markets sector continued to dominate insolvency activity with 123 administrations over the first six months of the year, of which nearly half (61 cases) were in retail. This was followed by building and construction with 101 cases and industrials with 100 cases.

Alistair McAlinden, managing director and head of Scotland at Interpath Advisory, said: “A certain level of administrations is to be expected as part of the natural economic rhythm.

“While the rate of administrations fell compared to last year, the likes of business services, real estate, charity third sector, and consumer markets, including leisure and retail, continue to face pressure in Scotland and remain some of the most impacted sectors.

“This comes when, at a national level, corporate administrations are back running at pre-Pandemic levels as the economy shakes out underperforming and unsustainable businesses.

“The next few quarters will be critical to see whether we settle at those historic levels of distress nationally or administrations push beyond that, and whether Scotland also follows suit.”

Mr McAlinden continued: “Business leaders will be looking for a period of stability from the new Government that can foster economic confidence and improve visibility of future trading conditions, which is incredibly important for conversations with lenders, customers, and suppliers.

“Of course, administrations can also be a symptom of businesses not being able to keep pace with growth or an evolving economic landscape – a reminder that the evergreen principles of sound financial management and the ability to continually adapt and evolve continue to apply.”