A letter seen by the Enquirer was sent to all staff by boss Nick Yeomans earlier this month.
It states: “It is with deep regret that I have to inform you that Star Services (Southern) Ltd is unable to continue trading in its current form.
“Despite the best efforts of the directors and all of the staff we have been unable to sustain the impact on the business caused by non-payment from one of our main contractors.
“We have no option than to make the majority of staff redundant.
“It is a sad day for all of us.”
Latest accounts filed at Companies House show the firm employed 33 staff last year.