North-east housebuilder Stewart Milne Group (SMG) has entered administration with 217 jobs lost and hundreds of sub-contractor jobs now at risk.
The group had been up for sale but two bids - including one from Stewart Milne himself - were rejected by the bank.
The Westhill-headquartered firm has more than 350 directly on its payroll and supports a workforce of more than 1,000 people, including sub-contractors.
It's current North-east projects include Charleston in Aberdeen and Dunnottar Park in Stonehaven, while future plans indicate potentially 160 new homes in Newburgh, Aberdeenshire.
'I tried everything I could'
Milne, the firm's owner and founder, told The Press & Journal he was "struggling to accept" the situation, "given the profound impact it will have on employees, sub-contractors, suppliers and customers."
He continued: "Stewart Milne Group was up for sale and, following significant interest, two bids were submitted.
"The bank has not accepted either bid and withdrawn its funding, which left the directors with no option but to appoint administrators.
"I tried everything I could to find a way to achieve a better outcome for the business and the people who depend on it.
"One of the bids could have delivered a comparable, financial return to administration and, crucially, allowed the business to continue to operate, safeguarding hundreds of jobs and protecting livelihoods."
All options being assessed
Teneo Financial Advisory have been appointed administrators for SMG and six of its subsidiaries. They say 112 employees are being retained across the group for now.
Adele MacLeod, of Teneo, said: "The downturn in the UK housing market combined with an extensive sales process not resulting in any viable offers has, ultimately, led to the need for the directors to place Stewart Milne Group Limited and some of its subsidiaries into administration, regretfully with some immediate redundancies.
"We continue to assess all the options in respect of the group’s Scottish development sites and encourage any party with an interest to get in touch."
First Minister speaks out
Posting on the social media site X, formerly known as Twitter, the Scotland's First Minister Humza Yousaf said: "This is very concerning news and undoubtedly a huge shock for the workers impacted.
"PACE (Partnership Action for Continuing Employment) will be engaged to support the workforce as best we can at this deeply worrying time."