Last week administrator FRP Advisory LLP said it had received interest from nine potential buyers but the firm said today it had failed to strike a deal.

One company, Suffolk-based Thurston Building Sysyems, is understood to have signed a novated contract to finish five McDonald’s restaurants.

A handful of workers will be kept on to help complete outstanding contracts, but the vast majority of the 200-plus workforce at the East Yorkshire factory were told they would be made redundant today.

David Thornhill, joint administrator to Britspace Modular Buildings, said: “While there has been significant interest shown in Britspace Modular Buildings, the joint administrators regret that no sale of the business has been concluded.

“In view of this, and in view of the uncertainty employees have faced over the last few weeks, we have reluctantly concluded that there is no option but to make a significant number of redundancies with immediate effect.

He added: “A small number of staff will be retained to complete some work in progress, which has been agreed with a major customer.

“Those employees that are to be retained will be contacted over the next 48 hours with a view to work re-commencing as soon as possible.”

Thornhill said: “We will ensure all redundancy claims are processed as quickly as possible, and will work closely with the local job centre to provide support and guidance to redundant members of staff.

“We shall continue to focus on the realisation of the company’s assets as a going concern sale has not proved possible.”