Two of Cornhill Construction’s subsidiaries have been placed into administration.
Cornhill Interiors and Cornhill Retail were put in the hands of administrator Colin Wilson of Tenon on Tuesday.
The group made 21 people redundant at the same time, and is now running with 41 staff to maintain the goodwill of the contracts.
The group suffered from cash flow issues and in recent weeks has been experiencing increasing pressure from creditors.
The board instructed Tenon Recovery to carry out a full review and following advice that urgent protection should be sought, the directors placed the relevant parts of the group into administration.
Mr Wilson said: “The Group will endeavour to continue with all client contracts while seeking a sale of the business. We have already been speaking to a number of well known parties in the construction industry that have shown strong interest and we are hopeful of deal in the coming weeks.”
Accounts filed with Companies House show Cornhill Interiors turned over £13 million in the year to March 2008.