A survey, carried out by KPMG Corporate Recovery, revealed that 48 companies were forced to close - around 16 more than in the same period in 1998.

Blair Nimmo, from the corporate recovery unit, said the figures suggested Scotland was not coping too well.

But he added: "These figures should be put in context. Given the number of businesses which are going bust in the country, it is relatively small compared with the number of businesses in Scotland as a whole."

'Healthy economy'

"From my own experience, we do have a healthy economy.

"KMPG is involved with a number of companies across a wide number of sectors.

Hundreds of jobs have been lost

"It appears the difficulties some businesses are having are peculiar to themselves. But it is the case that in the economy as a whole manufacturing, textiles, printing and haulage is suffering.

"However, the businesses which are in trouble are turning to their professional advisers sooner, which is a good sign."

Scotland's sorry picture is reflected throughout the rest of the UK.

KPMG said it recorded 304 receiverships in the UK between January and March this year, an increase of 24% on the 246 reported in the last quarter of 1998.

The rise was partly due to seasonal factors, but the number was still up 19% compared with the same period last year.

Manufacturing hit

The manufacturing industry was the hardest hit with companies in the sector accounting for almost a third (31%) of all receiverships.

Financial services companies accounted for 12% while the wholesale and distribution made up 11% of total receiverships.