Pile manufacturer Pipe and Piling Supplies has ceased trading with immediate effect.
The Fife and Bridlington-based firm manufactured steel foundation piles, and entered administration after a contract with Network Rail was delayed, causing a cash flow crisis.
Joint administrators Tom MacLennan and Iain Fraser of FRP Advisory were brought in and the firm was immediately closed.
MacLennan said: “Pipe and Piling Supplies was a well-established provider to the rail infrastructure market and had been contracted to work on the major Network Rail infrastructure maintenance contract.
“Unfortunately, after a delay in this contract the company was forced to seek to diversify its activities.
“This has ultimately proved unsuccessful, resulting in significant cashflow difficulties which unfortunately could not be resolved.
The firm, which reported a turnover of £23.5M in the year to February 2016 and £17.85M in the year to February 2017, employed 16 staff. Ten were laid off recently, with the remaining six have also been made redundant.
MacLennan added: “As joint administrators we have appointed specialist construction agents to assist in reviewing the company’s remaining contracts and are focused on maximising asset realisations and debtor collections, as well as working closely with all agencies, including the Redundancy Payments Office, to ensure that employees receive every support at this difficult time.”