GB Group has entered administration.
It is understood that BDO administrators Tony Nygate and Graham Newton were appointed yesterday and almost 350 staff at GB Group have been made redundant.
Nygate said GB Group had experienced cash flow difficulties in recent months including three substantial claims on contracts.
“The companies experienced a serious deterioration in their working capital position and as a result were unable to continue to operate.
“Regrettably, it has been necessary to make all employees redundant, save for a small number to assist the administrators,” Nygate said.
The knock-on effect of GB’s collapse has meant the halting of several projects, including a £32M five-star hotel and £7.5M Premier Inn in Leeds.
The news follows an announcement from MJ Gleeson, which holds a 25% stake in GB Group, on Thursday that GB Group intended to appoint administrators and that its £4.9M investment in the company was in jeopardy.