Builders merchant and tool hire firm A Thompson & Sons has fallen into administration, putting 70 jobs at risk.
The firm operates four branches across North East England and also offers waste management services.
Mark Firmin, Howard Smith and Paul Flint of KPMG’s restructuring practice were appointed joint administrators on 5 March.
A Thompsons & Sons said last week that it was facing financial difficulties and was exploring whether to seek a Company Voluntary Arrangement (CVA) with its creditors.
However, following a winding up petition from HMRC “the ability to achieve this without the protection of an administration has not proved possible”, said the administrators.
Joint administrator and regional head of restructuring at KPMG Mark Firmin added: “The business has been impacted by weak trading conditions across the sector which has led to cash pressures.
“Ultimately an inability to pay last month’s wage bill and the issuing of a winding up petition by HMRC have resulted in Thompsons entering administration.
“We are now assessing the financial position of the company while marketing the business and assets for sale.”
No redundancies were made immediately upon the appointment of administrators.