Holystone, which includes civil engineering, house-building and plant hire activities, went into administration on 18 November.
A spokesman for the administrators from Baker Tilly said that Holystone had been in a company voluntary arrangement (CVA) “but it had struggled to maintain turnover, and cashflow proved to be an issue as a result of suppliers requesting payment up front”.
He confirmed: "All 40 of the company’s employees have been made redundant."
Holystone was based in Blaydon and began in the 1970s as a heavy civil drainage and road construction contractor. From there it diversified into plant hire, demolition, waste management and, more recently, house building.
It was a member of the National Federation of Builders and the Construction Plant-hire Association.
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