The £77m turnover firm is a leading provider of labour for the rail industry and works with all four Network Rail renewal contractors.

According to a report in the Sunday Times accountant Deloitte has been put on standby as the firm battles for survival.

Doubts over the firm’s future could impact on up to 5,000 jobs.

Vital currently operates from a dozen locations across the UK, including Manchester, London and Glasgow.

It is involved in long term supply contracts with many leading rail contractors and is Network Rail’s largest supplier of rail labour, supporting most of their 40 maintenance units.

As well as the rail sector, it also operates in the power and telecoms industry and offers staff for infrastructure projects.

The most recent accounts show the group posted losses of £600,000 in 2011.

Founded by John Smith, CEO, in 1983, the company was initially a design consultancy and professional and technical recruitment business, entering into contracting and training services some years later.

Last year it was named as one of North West’s best apprenticeship employers and has 346 apprentices training to gain the valuable skills and expertise they need to work in the rail industry.