Forty-nine staff were laid off on Friday after administrators from insolvency specialist BDO took control of the Greenwich-based business.

The firm is the core business of the £20m turnover family-owned Malden Group, which continues unaffected by the collapse, along with several other subsidiaries.

A main contractor on a London site told the Enquirer: “Somebody came on to our job at the end of the week and called all their lads off. We haven’t seen anyone since.”

The Drywall business has three main London contracts: St George’s Dickens Yard residential development in Ealing; Countryside’s Canning Town phase 2 and a job for United House.

Tony Nygate, BDO business restructuring partner, said: “The unprecedented wet winter conditions last year delayed many building projects, leading to cashflow issues for Malden Drywall plc and a deterioration in its working capital position.

“Unfortunately, the company was left with no other option but to enter administration.

“The Joint Administrators are taking all necessary steps to mitigate losses to customers and, going forward, will seek to maximise recoveries for the benefit of all creditors.”

The firm was set up by Dennis Russell in 1969 as Malden Drylining & Plastering.

He grew the business substantially during the 1970’s and early 1980’s when he was then joined by his two sons Mark and Stephen Russell, who became managing and commercial director

In 1998, they continued the expansion of Malden by establishing Malden Renders & Finishes to specialise in the external render business.

In 2009, the sons saw a new market for external works and set up Malden Facades, a business specialising in all aspects of external façade operations including steel framing, rainscreen cladding, roofing and all insulated render systems.

The various different Malden businesses historically traded independently however in 2011 a restructuring took place to create the Malden Group as a holding company incorporating all the “Malden” companies, Malden Drywall Ltd, Malden Facades Ltd, Malden Renders & Finishes Ltd and Malden Décor Ltd.