The Stewart Milne group is now in administration and the house builder has ceased trading with the loss of 217 jobs.
Administrator Teneo shut all sites on Monday afternoon leaving staff and suppliers stunned at the group and six of its subsidiaries.
Teneo said: “No further construction is being completed, at this time by the companies as a result of the administrations.
“The administrators will shortly be contacting all known customers with reservations, creditors, suppliers, subcontractors and hired plant/equipment providers.
“If you are a supplier, please note that no further orders should be fulfilled, and delivery to the sites should not be attempted, unless otherwise advised by the administrators.
“If you have outstanding invoices, please note that a claim will need to be submitted to the administrators.”
The whole group was put up for sale in April 2022 when its founder and main shareholder Stewart Milne decided to retire after nearly 50 years at the helm of the business.
Two bids for the business were rejected by the firm’s bank.
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.”
A statement from founder Stewart Milne said: “I am devastated by this totally unexpected outcome of the sale process and struggling to accept it, given the profound impact it will have on employees, subcontractors, suppliers and customers.
“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 The bank has not accepted either bid and withdrawn its funding which left the directors with no option but to appoint administrators.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. I believe one of the bids could have delivered a comparable, financial return to administration and, crucially, allowed the business to continue to operate, safe-guarding hundreds of jobs and protecting livelihoods.”