In an update to the City this morning Ashley House said the move came as “certain creditors were minded to take action against F1M for non-payment.”

The modular business is now up for sale and “discussions with two parties are already underway.”

Ashley House has also suspended trading in its shares as it continues to seek further funding for the wider business.

It said:”The Company continues to pursue the funding required both to meet its ongoing working capital commitments and to support its affordable housing strategy.

“Although progress is being made, if ultimately unsuccessful or not achieved in timely fashion and in the absence of other sources of funding, the Company will not be able to continue to trade as it would be unlikely to be able to honour its obligations to creditors.”