The Aberdeen based firm supplied products to a host of major contractors across the UK.
Administrators KPMG said 211 of the 272 staff had been made redundant following their appointment.
The remaining 61 staff have been kept on to help the administrators realise the company’s existing assets and to complete a number of orders.
At its peak in 2007, AC Yule had 460 employees with turnover of £37m.
Blair Nimmo, from KPMG in Scotland, said: “As a result of prolonged difficult economic conditions over the last three years, AC Yule & Sons Ltd sustained a reduction in its turnover together with considerable erosion in its margins.
“The directors proactively implemented a number of restructurings – both financial and operational – which involved significant additional share capital being injected.
“Unfortunately, despite these actions, losses continued to ensue, which led to the directors concluding that they had no option other than to seek the appointment of administrators.”
KPMG said some orders would be completed while a buyer for the business and assets was sought.