All staff at the firm have been made redundant as business rescue specialist Begbies Traynor prepares to liquidate the firm.

Lee Demolition flagged-up financial problems this summer when the company entered into a Company Voluntary Arrangement in a bid to head-off action by creditors.

The  firm reached an agreement with creditors to repay 23.6p in the pound over a five-year period on debts of around £3.5m.

But Begbies Traynor said: “Following creditor approval of the CVA of Lee Demolition Limited on 16 September 2013, the company’s directors have been unable to adhere to the terms of the CVA due to sustained delays in customer payments and declining turnover.

“As a result, the Company has now ceased trading and, unfortunately, the directors have had to make all of the employees redundant.”

Creditors should contact Wayne Macpherson or James Hopkirk on 01702 467255.

Lee Demolition profits slid from £1m on a turnover of £11m in 2011 to just £300,000 from almost doubled turnover of £19m last year.

More recently the firm has been hit be several loss-making jobs.