The Holsworthy-based firm said it had fallen victim to the ongoing general stresses being suffered by many subcontractors.

These  included significant bad debts, late payments and difficulties in securing credit facilities with suppliers and the company’s bank.

As a result, cash flow was compromised, leading to a decision by the directors to place the company into liquidation, which is being handled by Ian Walker and Julie Palmer of national business recovery and restructuring firm Begbies Traynor.

Walker said: “Knowle Contractors’ directors did everything they reasonably could to try and contain a steadily worsening situation caused in no small measure by circumstances outside their control.

“It‘s always very sad to see such a long-established local company come to the end, but they are not alone in feeling a severe sting in the tail of the 2008/9 recession.”