Chesterfield-based construction firm Banner Holdings has gone into administration.
All of the company's 30 staff have lost their jobs.
Banner had been involved in a lengthy legal dispute with Colchester Council after running into problems on the city's Visual Arts Facility, and was eventually booted off the project.
The firm's turnover plunged from £23.1m in 2007 to £10.3m in 2008, when it made a £2.8m pre-tax loss.
In 2009, Banner reported a turnover of £13.2m and pre-tax profit of £159,000.
Bell Advisory has been appointed as administrators.