Administrators from Grant Thornton immediately struck a deal with Kier to buy the rail assets and Buckingham’s HS2 contract for £9.6m.

The deal saves around 180 Buckingham staff jobs who will now transfer over to become part of the Kier Transportation business.

At the same time administrators axed 446 staff after they failed to find buyers for building, civil engineering, demolition, major projects and sport & leisure operations.

Buckingham Group’s collapse is the biggest since Carillion spectacularly imploded in January 2018.

Mike Kempley, chairman at Buckingham Group Contracting, said ‘’After 36 years of uninterrupted trading, this is an extremely sad day for all the exceptionally committed and talented people who have made Buckingham Group Contracting the business it is.

“In moving to Kier, we are sure our Rail & HS2 teams are in good hands and will continue to deliver an excellent service.”

He added he understood many other businesses were now engaging with former Buckingham  staff.

Rob Parker, Director at Grant Thornton, said that following recent significant cashflow pressures and subsequent losses incurred by the business, the directors and its advisors had tried to deliver a successful refinancing to secure the future of the business.

But the legacy issues faced by Buckingham Group and ongoing losses were simply too great to enable the refinance to succeed in an acceptable timescale.

He added: “The joint administrators intend to continue to operate part of the company’s head office function for a short period, in support of the purchaser, retaining around 45 employees.”

Andrew Davies, chief executive, said: “We have previously stated that we would consider value accretive acquisitions in core markets where there is potential to accelerate the medium-term value creation plan.

“This acquisition is one such example – it is an excellent strategic fit and accelerates our rail strategy, providing work with new rail clients and increasing our capabilities.

“I am delighted to welcome our new employees, clients and suppliers to Kier.”

Given the business’ modest size, Davies said the acquisition would not materially impact the Kier’s forecasts for FY24, nor its year-end or average net cash position.