SRM Holdings, the Leeds based property group owned by Simon Morris, has gone into administration.
Insolvency firm Begbies Traynor has been appointed as administrator to the firm, which was set up in the summer after Morris voluntarily dissolved Morris Properties and its parent company SR Morris.
It is understood that the company has debts of more than £50m to a number of high street banks.
Simon Morris, a former Leeds football club director, ran his business from an £8m headquarters at Brewery Wharf in Leeds, and was last year ranked eighth in the Sunday Times list of the 100 richest young people.
His company owned more than 500 properties, mostly apartments in Leeds, and for the year ending 31 July 2006 made a profit of more than £15m.
Morris was also featured in a Panorama documentary which alleged that his firm sold student flats to buy to let investors at inflated prices, which led to a Serious Fraud Office investigation.
Is still subject to a joint investigation between West Yorkshire Police and the Serious Fraud Office