Nearly 60 people have lost their jobs after Yorkshire-based construction firm Management Cubed went into administration.
Joint administrators from RSM Restructuring Advisory were appointed on 4 November after the contractor incurred significant losses on two major contracts.
Management Cubed was a principal contractor managing and co-ordinating construction and fit-out works across a number of sectors, including retail, education and health.
RSM said the two losses have only recently come to light and the directors of the contractor felt the company could not continue to trade without potentially worsening the position for creditors.
Forty-two employees were made immediately redundant and their claims are being dealt with by the Redundancy Payments Service.
Sixteen employees will remain with the business to help the administrators “maximise realisations” for creditors from ongoing contracts.
RSM Restructuring Advisory partner and joint administrator Keith Marshall said: “The construction sector is facing challenging trading conditions, with contractors often having to take disproportionate financial risk on some contracts.
“On this occasion, the directors of Management Cubed have acted quickly when the losses became clear and taken the difficult decision to place the company into administration.”
He added: “It’s early days, but we are working with our professional advisers to review the status of the current contracts with a view to maximising realisations for creditors.”