Carillion provides a huge array of public services and projects, but this morning announced it would file for voluntary liquidation.
The construction giant said it has "no choice but to take steps to enter into compulsory liquidation with immediate effect" after talks failed to find another way to deal with the company's debts.
The government held talks in an attempt to avoid the company going into liquidation but the weekend negotiations proved unsuccessful.
Among its services, Carillion is involved in the construction of HS2, supply of the NHS and National Rail.
Last November, Carillion announced that it had signed a contract with Network Rail to upgrade the existing track and infrastructure on the route between London and Corby in Northamptonshire
In Cambridgeshire, they're one of the key companies involved in the 1.5 billion pound A14 upgrade.
The firm won the contract to upgrade the rail line between Corby and London and remodel Peterborough Station.
The company also helps manage 50 UK prisons, including Whitemoor in Cambridgeshire and Woodhill in Milton Keynes - although prison inspectors have criticised their work.
Recently appointed Minister for the Cabinet Office David Lidington said the Government's focus was to ensure wages were paid and public services carried out.
"The Government's job here is not to bail them out but to protect key public services and that's what we're doing," Mr Lidington told ITV News.
"Our job now is to make sure workers are continued to be paid, suppliers are continued to be paid and public services are delivered."