About 35 jobs have been axed after a building firm ceased trading.
BL Scaffolding, in Queen Street, Leicester city centre, has been forced to close after being left with crippling debts following the collapse of a major customer.
The company was owed £96,000 by Hallam Contracts, of Oadby, which ceased trading last month.
BL bosses announced the closure of the 30-year-old firm to workers yesterday.
No one from the company, which is set to go into voluntary liquidation, was available for comment last night.
Neil Money, of CBA Insolvency, of Leicester, who will oversee BL's liquidation, said: "The company is unlikely to get back any of the money owed by Hallam for some time, which for a company of its size has left it crippled."
It is believed the 300 sub-contractors and suppliers owed £4 million by Hallam are likely to get back just a quarter to a half of the debt.
Hallam's administrators have warned that a number of those creditors have been left close to collapse.
