Founded in 1928, the Builders Merchant Company traded from outlets in Rotherham, Hull, Goole and Scunthorpe.

The merchant, which was headquartered in Scunthorpe, was the subject of a winding up petition last month from Close Invoice Finance.

Administrators were appointed after attempts to sell Builders’ Merchant Company through the accelerated mergers and acquisitions process failed to secure a buyer.

All 26 employees of the business have been made redundant and the administrator Begbies Traynor is hoping to sell the freehold property and assets of the business.

Joint administrator Andrew Mackenzie, of Begbies Traynor, said: “Unfortunately the construction industry continues to face extremely challenging conditions and the knock-on effect of that is being felt by suppliers including Builders’ Merchant Company.

“We are now working hard to maximise the value of the company’s assets and ensure the best possible return for creditors.”