Directors said the move was designed to give them breathing space as they battle to save the £165m turnover business which specialises in student accommodation, retirement living and build to rent jobs across the North and Midlands.

Other companies within the wider Torsion Group, including the development and care home operations, are unaffected by the move and continue to trade as normal.

The Enquirer understands Torsion Construction is currently working on 12 live sites.

In a statement the firm said: “Torsion Group confirms that the directors of Torsion Construction Limited have filed a Notice of Intention to Appoint Administrators.

“This decision has not been taken lightly. It follows a prolonged period of exceptionally challenging trading conditions across the UK construction sector, together with a number of commercial events that have materially impacted the liquidity of the construction business.

“Over the past two years, Torsion Construction has experienced significant short-term liquidity pressures arising from a combination of delayed capital events, project-specific commercial matters, regulatory changes and wider market conditions.

“In addition, the introduction of direct payment arrangements on a number of projects successfully protected clients, supported project continuity and safeguarded payments to many supply chain partners, but significantly reduced the working capital available to the construction business.

“The Notice of Intention provides a period of legal protection while the Board continues to work closely with its investors, funders and professional advisers to pursue a number of advanced liquidity initiatives and determine the best possible outcome for the business and its stakeholders.

“This process relates solely to Torsion Construction Limited. Torsion Care, Torsion Homes and Torsion Developments all continue to operate and remain focused on delivering for their customers, investors and funding partners. Torsion Care & Torsion Projects are operationally and contractually independent from Torsion Construction Limited and continue to trade as normal.

“Over recent years, the Group has been implementing a strategic transition towards Construction Management and Development Management activities. This reflects a deliberate move towards a lower-risk, more capital-efficient operating model that is better aligned with current market conditions, while retaining the expertise, relationships and delivery capability that have always underpinned the business.

“Our immediate priorities are to support our employees, maintain continuity across live projects wherever possible, work constructively with our clients, funders and supply chain partners, and achieve the best possible outcome for all stakeholders.

“We recognise that today’s announcement will create uncertainty and concern, and we would like to thank our employees, clients, consultants, investors, funders and supply chain partners for their continued professionalism, loyalty and support during this period. Further updates will be provided as the process progresses.”