Administrator Charles MacMillan, partner at Beever and Struthers, said Colourclad suffered from the downturn in business affecting construction and in particular from increasing pressure on profit margins.

But the collapse of Wrexham-based main contractor Barnhill, which owed Colourclad an estimated £350,000, finally pushed the cladding specialist over the edge.

MacMillan said: “Over the past couple of years competition for work in construction has grown increasingly fierce and Colourclad had to adapt by quoting for larger contracts but at increasingly regressive margins.

“The business had previously concentrated on smaller refurbishment projects but the amount of this work was also badly affected by the onset of the economic downturn.”

He added: “I am proactively seeking a buyer for Colourclad but the overly competitive nature of this sector means that sadly, yet another business is likely to fail.

“All the employees were made redundant because there is no profitable work in progress to complete.”