More than 200 jobs have been lost after housebuilder Stewart Milne Group went into administration.
The organisation had failed to find a buyer after chair and founder Stewart Milne announced his retirement in 2022.
Administrator Teneo said 217 employees have already been made redundant, with 54 retained to help close down the business.
A further 58 employees have been retained on ongoing developments in north west England, which are being worked on by Stewart Milne Homes North West England (Developments), which is not in administration.
Hundreds of subcontractor roles are also likely to be affected by the closure of the business.
Staff were reportedly invited to an online call on Monday afternoon and informed of the decision. They were told they would not be paid from the week before Christmas or for work completed on Monday, according to The National newspaper.
In a statement, Stewart Milne said the only option was to appoint administrators because Lloyds Banking Group, which he claimed rejected two bids to buy the organisation, had withdrawn its funding.
Milne said: “I am devastated by this totally unexpected outcome of the sale process and struggling to accept it, given the profound impact it will have on employees, subcontractors, suppliers and customers.
“I tried everything I could to find a way to achieve a better outcome for the business and the people who depend on it. I believe one of the bids could have delivered a comparable, financial return to administration and, crucially, allowed the business to continue to operate, safeguarding hundreds of jobs and protecting livelihoods.”
Scotland’s first minister Humza Yousaf said: “This is very concerning news and undoubtedly a huge shock for the workers impacted.
“Pace (Partnership Action for Continuing Employment) will be engaged to support the workforce as best we can at this deeply worrying time.”
A spokesperson for Lloyds Banking Group said: “When a company experiences financial difficulties, we will always try to find a solution that places the business onto a sounder financial footing without the need for any insolvency process.
“Unfortunately, despite several years of support and forbearance, including multiple maturity extensions to the borrowing, this has not been possible in this instance. We will now work with the administrators, as they consider the best options for the business.”
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