The business which includes its trading subsidiaries David McLean Contractors, David McLean Developments and David McLean Homes filed for administration this morning.

Nick Edwards, Bill Dawson and Carlton Siddle of Deloitte, the business advisory firm, have been appointed as the joint administrators.

The group, which is based on Deeside, Flintshire, is a house builder, building contractor and property developer operating in the north west, the Midlands, South Wales and the South West. It has a turnover of £160m and approximately 320 employees.

Nick Edwards, joint administrator, said: ‘Whilst the property downturn has impacted the group’s cash flow, the land and property assets are high quality, and combined with the excellent reputation of the group, should make the house building division an attractive prospect for potential purchasers.

'We are continuing to trade this part of the business whilst we seek a buyer.

‘The contracting division has struggled to generate a critical mass of profitable contracts, and regrettably we have had to take the decision to close that part of the business, other than retaining a significantly reduced headcount to work with customers to complete or transfer limited works on outstanding contracts.’