EDS is part of troubled demolition group Silverdell which delisted from the AIM market last week following months of financial turmoil.

The notice of intent to appoint an administrator gives EDS temporary protection from any legal action by creditors.

The company is not in administration and still under complete control of its directors.

The move comes as angry suppliers chase payment from the firm and employees leave as they face the threat of redundancy.

One subcontractor said: “EDS owe us thousands and it’s just excuse after excuse when you ring up for your money.”

A former employee told the Enquirer: “Morale is at rock bottom at the firm.

“People still there know they are on borrowed time and their days are spent dealing with unpaid suppliers.

“Some of the critical suppliers have been paid to keep jobs going but the smaller guys are just being fobbed off.”

Silverdell was bought for £1 by turnaround specialist Rcapital last month after trading in its shares was suspended during the summer.

A recent Silverdell statement said: “Since July 2013 trading conditions in each of the Group’s subsidiaries have been extremely challenging.

“As a result of the challenging trading conditions, the working capital position of the subsidiaries has deteriorated.”

EDS had a turnover of £27m in 2012 and made a pre-tax loss of £2.8m.

Construction credit specialist Top Service said: “We have received numerous reports from our customers advising that they were experiencing difficulties with this company.

“An increase in these reports earlier this month meant that we felt the need to monitor the company closely.”

Another subcontractor said: “It is unbelievable what has happened at the firm.

“One minute they were expanding and next all this.

“We stood by them in the summer and this is how we are repaid.”

Silverdell and Rcapital did not respond to requests for a comment.