Around 140 companies are owed money by Phelan which will now try to trade out of its financial problems.

Neil Coy, managing director, told the Clacton Gazette: “The short-term aim of the business will be to minimise its overheads, which will in turn see the business engaged in a smaller number of jobs so it can stabilise its finances and return to a position of growth.

“The company has built up a solid reputation over the years and works on six and seven figure contracts, so it is anticipated that the company will have the ability to pay back creditors in full and has every chance of continuing to be a highly profitable company.

“At the end of 2019, following a difficult trading year, the board of directors took the decision to propose a CVA to creditors. The CVA delivers the maximum return to creditors, primarily through the realisation of the value in our property holdings.”

Latest accounts filed at Companies House for the year to December 2018 show Phelan had a turnover of £77.9m generating a pre-tax profit of £1.49m.