Gareth Rusling and Chris White of The P&A Partnership were appointed joint administrators and quickly sold the business to an unnamed buyer.

Democon worked across the Midlands with large property developers and contractors including Carillion, Interserve, Lovells and Wates Construction.

The firm was founded in 2007 and continued to grow despite one of the most challenging periods in construction sector history, with turnover peaking at £2.75m in 2013.

Democon hit two major problems with a number of contracts suspended indefinitely and a disputed bill totalling £150,000.

Rusling said: “Democon has endured a torrid time during the recession, but this deal has rescued the business and the jobs of all employees.

“The business and assets have now been sold to Democon UK Limited and they will be working to fulfil key contracts, while also helping to collect all money owing.”