SNP candidate Tasmina Ahmed Sheikh's former law company has entered into administration.
The failure of Hamilton Burns WS has been blamed on a drop in legal aid income and very high levels of historic debt.
It is understood that Tasmina Ahmed Sheikh was part of Hamilton Burns WS from 2005 until 2015. Ms Sheikh was a director of Hamilton Burns WS from 29th July 2014 until 8th May 2015. She left the firm as she became an MP for Ochil and South Perthshire in 2015.
Joint administrator Tom MacLennan said the Hamilton Burns had faced a "marked reduction in legal aid income" and "very high levels of historic debt".
Mr MacLennan added: "Every effort had been made to find a solution for the firm, however it became clear that administration was the only option.
"We are pleased to have negotiated agreements for the transfer of seven staff, client files and work in progress. It is with great regret that the remaining nine staff have been made redundant, for whom we will provide as much support as possible."
Tasmina Ahmed Sheikh is reportedly under investigation by the Law Society of Scotland - which is believed to coincide with her time at the firm. Ms Sheikh has made it clear she is innocent of any wrong doing. The investigation is not currently linked to the administration of Hamilton Burns WS.
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