Hallam was established 90 years ago, making it one of the oldest builders in the East Midlands.

It boasted a directly employed workforce and earned recognition as a leading trainer in the region.

Reports estimated that the firm owes £4m to around 300 subcontractors and suppliers.

Hallam was working on up to 15 large projects, including a £12m contract for student accommodation for developer Victoria Hall at Godiva Place in Coventry.

The firm is also building a £3m health centre for client Assura Medical in Leicester and just started work on a 42-home job in Coventry for Cassidy Group.

Family directors called in administrators Begbies Traynor after facing a winding up petition from a subcontractor, reported to be owed £500,000.

The firm picked up several awards earlier this year for its St Martins House Development in Leicester, which achieved recognition for safety and excellence as a quality refurbishment project.

The owner of a south Leicestershire company, which is owed about £50,000 by Hallam, said he was unable to pay some of his workers.

The owner, who did not want to be named, told the Leicester Mercury: “We have got six subcontractors who have not been paid and might not be for some time.

“A five-figure sum is very significant for a company like us.”

Carl Nicol, managing director of Westcotes Flooring Company, of Broughton Astley, said the company was owed about £24,000 by Hallam for a contract completed in September.

He told the Mercury: “We can recover from this, but when they placed the order they would have known they were on rocky ground.”

Administrator John Lowe said: “Poor margins, disputed accounts and bad debts have all contributed to the failure of this well-known Leicestershire business.

“The directors very much regret the action they have had to take but following a petition presented against the company, felt they had no other options.”