Stone Firms, one of the few remaining suppliers of Portland stone, has gone into administration.
The firm, which is based on the Isle of Portland, near Weymouth, operates three quarries and a mason factory and is a leading Portland stone supplier to the construction and masonry industry.
Ian Corfield and Allan Graham, from KPMG, have been appointed as administrators.
Stone Firms employs 59 members of staff, the majority of which have been made redundant. A core team of 9 staff have been retained at the businesses as the administration team talks to interested parties.
Corfield said: "Stone Firms has a long and successful history of producing the world famous Portland stone.
“The business has suffered a severe decline in revenue over the last two years as a result of the economic downturn which has had a huge impact on the construction sector. Unfortunately this led to a shortfall of cash and insurmountable pressure from creditors, leaving the directors no alternative but to request the appointment of administrators.
"Clearly one of our immediate key objectives is to seek any interested parties that could rescue either the company or its business and assets as a going concern. Such parties should contact us as soon as possible.”
Stone Firms invested over £2m in its factory and quarry in recent years.
The company's history dates back to the 19th Century.