Administrators have now made all of the company’s staff redundant at the contracts and demolition divisions after being appointed earlier this month.

Holystone Civil Engineering continues to trade from the company headquarters in Tyne and Wear.

Holystone had been struggling finnacially for some time and entered a Company Voluntary Arrangement (CVA) with creditors earlier this year.

A Baker Tilly spokesman said: “It had been in a CVA process, but had struggled to maintain turnover, and cash flow proved to be an issue as a result of suppliers requesting payment up front.”

The Enquirer understands that under the CVA Holystone was due to make contributions totaling £800,000 over a 60 month period.

But as of earlier this month Holystone was six months in arrears and the administrators were called in.