Hopes that Muirfield Contacts could be sold out of administration as a going concern were dashed as 258 workers were axed.
Administrators said the position had “effectively ceased trading” prior to their appointment on Wednesday and its position was “untenable and unsustainable”.
More than 250 directly employed staff have now been notified that they are being made redundant and similar letters are being despatched to more than 100 self-employed contractors who also worked with the defunct business.
The firm had been suffering cash flow issues and had been unable to secure additional investment when it collapsed.
“We were not in a position to recommence trading and had no option other than to begin an orderly wind-down of the business,” joint administrator Derek Forsyth said this afternoon.
“As a result we very much regret that 258 employees have been made redundant and that the company is no longer in a position to offer work to around 110 labour only sub-contractors who had been engaged prior to administration.
“We have written to all employees affected by redundancy and letters to the labour-only sub-contractors are currently being issued.
For more on this story see Saturday’s Courier.