Welsh construction company Dawnus, which employs hundreds of workers, has gone into administration.
Grant Thornton have confirmed they've been appointed as administrators of the firm.
Dawnus is a large construction group operating throughout the UK employing around 700 people across 44 construction sites.
Staff at work sites in Swansea and Manchester downed tools this week after claims subcontractors have not been paid.
Workers of the multi-million pound development on the Kinsgway in Swansea were called to a meeting on Thursday morning, but they were sent home shortly afterwards.
The firm employs 700 workers and runs 44 construction projects across the UK and overseas.
This includes the Kingsway development, an £11.8m education centre for vulnerable young people in Swansea, a school in Welshpool and flood risk management works in Cardiff and St Asaph.
Financial firm Grant Thornton say due to financial difficulties, stemming from the downturn in the construction industry, directors have decided to put the firm into administration.
The Welsh Government say they've worked closely with the group and other companies over many months in order "to try and prevent this unfortunate decision by the Dawnus Board."
Swansea Council says it is in talks with the construction firm and its "main priority" is to ensure the Kingsway and education centre projects go ahead as planned.
In response to the news, Labour's Swansea East AM, Mike Hedges called it a "huge disappointment."