It has been confirmed that 257 people at North East construction firm Owen Pugh have been made redundant.
The announcement comes after administrators failed to find a buyer for the civil engineering arm of the company.
Owen Pugh has around 300 employees across 5 sites:
- The company's HQ in Dudley
- Outskirts of Sunderland
Administrators Grant Thornton UK LLP were called in on Monday 9 October
Cash flow problems are being blamed for pushing the engineering firm into administration.
The company is currently involved in helping to build an ambitious road scheme involving a triple-decker roundabout at the Silverlink Junction in North Tyneside.
The Highways Agency has confirmed that work there will not be affected.
In a statement the administrators say 30 jobs at the Owen Pugh Aggregates branch of the firm are safe for the time being while work continues to find a buyer for the branch of the company.
Owen Pugh Aggregates is the part of the company that operates Marsden Quarry near Sunderland.
The statement, however, goes on to confirm that the civil engineering arm of the group was no longer viable
A further nine employees have been retained at the Group’s head office in the short term to assist the Joint Administrators.