Portsmouth-based construction company Ralls Builders has gone into administration.
The 121-year-old firm, which employs 26 staff directly, owes around £2m to creditors.
Administrator James Tickell, from Portland Business and Financial Solutions, blamed the economy.
He told The News: “There's no one reason. It's just a consequence of working in the difficult current climate.
“Ralls has been incurring losses for this year, and has basically run out of money.”
The contractor primarily serves the public sector, working on social housing, education, and defence projects.
Its core activities are repairs and maintenance, refurbishment, design and build, new build and extensions.
The firm is still run by the Ralls family, with two of the present directors, Nick and Will Ralls, being great-grandsons of the founder.