Hull-based builder Stubbs Construction is seeking to enter a Company Voluntary Arrangement with its creditors.

The firm has been struggling to pay suppliers for several weeks and is understood to be planning to meet creditors on the 4 December to vote on terms being offered and decide the fate of the business.

Stubbs is presently involved in two legal actions with two subcontractors – Manor Interior Solutions and Reliant Ceilings & Partitions regarding enforcement of adjudications.

Established in 1978, the family-run business has developed steadily over the last 40 years and employs around 40 staff delivering projects worth around £5-6m.

The builder has completed care and residential schemes nationally as well as more local small-scale commercial and industrial projects.