Administrators have been called in to a cyber security firm headquartered in Edinburgh after it collapsed with the loss of 173 jobs.
Adarma, which was set up in 2009, had grown to become one of the largest businesses of its type in the UK and also had an office in London.
Will Wright and Alistair McAlinden from Interpath immediately made 173 staff redundant, of which 120 were in Edinburgh.
The directors had sought fresh investment or a buyer after the business lost a major customer, putting pressure on its cash flow.
However, after failing to raise new funding the directors were left with “no choice but to place the company in administration”, according to the administrators.
Three staff have been retained to assist with the winding up the business.
Adarma’s failure came as it emerged that the number of Scottish businesses entering administration fell by about a quarter in the first half of 2025 over the same period last year.
A total of 31 companies in Scotland filed for administration between January and June 2025 – down 24% from 41 during the same period in 2024, according to data from The Gazette Official Public Record.
Scotland ranked as the ninth most affected UK region, accounting for 4% of all administrations in the first six months of the year.
Nationally, the UK saw 783 administrations – an 11% drop from 2024, but still 3% higher than in 2023, highlighting the fragility of the business environment, said Shakespeare Martineau which analysed the data.
Fiona Pask, partner and head of Scotland at Shakespeare Martineau, said: “While the year-on-year drop in Scottish administrations is encouraging, the overall environment remains extremely challenging for many businesses across the country. Distress hasn’t disappeared – it may simply be taking new forms or being delayed by short-term fixes.”
Retail continues to be the UK’s hardest-hit sector, with a 29% increase in administrations year-on-year – rising from 119 to 153. Hospitality filings across the UK ticked up slightly (80 in 2025 vs 78 in 2024), while construction and manufacturing saw notable declines.
“Scottish retail and hospitality businesses, in particular, are grappling with evolving consumer behaviours, staff shortages and high energy costs,” said Ms Pask. “Even though administrations are down, many of these firms are still on a knife-edge.
“While a drop in administration volumes is a positive signal, it should not breed complacency. Many companies are still struggling with cashflow, limited access to funding, and uncertain demand.”
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