Co-owners John Edwards and Arthur Gee said they had decided to call it a day because of widespread cut-throat bidding and increasing problems raising working capital.

The well-known M&E contractor also ran a building business which was also placed in administration. In the last few years turnover declined from £24m at the start of the credit crunch to around £10m.

Farebrother worked across the country and had built up a track record in data centre work.

Edwards said: “With the ongoing serious decline in the industry, the directors of M&E contractor Farebrother have reluctantly decided that they can no longer foresee a profitable future for the business.

“It is a profoundly sad day for everyone at Farebrother after being established in 1964 and having secured multiple industry awards for excellence.

He added: “The directors recognise over the last few years that the only value now wanted by the market is the absolute lowest price.

“In a reducing and increasingly sub-economic market coupled with dire payment terms and tactics the business can no longer see an unsupported sustainable future.”

He added: “We have left the company in a pretty good state. There are no bank debts so hopefully the impact on the supply chain will be mitigated.”