Angry creditors were told at a meeting last week that they stood little chance of recovering the money they are owed as the Buckfastleigh firm went into liquidation.
The 50 staff that lost their jobs are owed £338,000 in pay arrears, according to the creditors report.
One creditor, Brunel Road Timber of Newton Abbott, is owed £9,500.
John Western, who runs the family owned business, said: “We are absolutely devastated. The worst thing is we have worked with Blight and Scoble since day one of our business.
“We have been in business for five years and built a level of trust with them.”
Blight and Scoble was established 115 years ago making it one of the South West’s oldest firms.
The Devon builder was working on a £1.2m contract for Devon & Cornwall Police’s new major crime investigation unit in Linhay Business Park, Ashburton.