Stoke-on-Trent groundworks and civils contractor Caldwell Construction has filed a notice of intention to appoint administrators as it scrambles to find a buyer and fend off creditors.

Industry sources said the £60m turnover firm has written to subcontractors and staff warning it is fighting for survival while talks continue over a possible sale.

Hundreds of subbies were told to stay at home this week after many failed to be paid last Friday. The cash-strapped contractor has been struggling to meet supplier payments for several weeks.

Tensions have been running high. Just over a week ago, diggers were torched at a site near Liverpool in an incident thought to be linked to payment disputes. It is also understood police were called yesterday to a Caldwell director’s home to disperse suppliers seeking payment.

Caldwell was approached for comment but calls were unanswered.

Founded in 2007, the business built a strong regional presence delivering groundworks for house builders and developers across the Midlands, North West and Yorkshire.

Sources said Caldwell has been active on several sites for Vistry Group, where payment delays are understood to have exacerbated cashflow pressures.

Vistry confirmed Caldwell operatives had been pulled off its sites and said it is now moving to line up replacements.

A Vistry spokesperson said: “We have been in consultation with Caldwell Construction and it is unfortunate that this action has been taken.

“To ensure there are no delays to construction programmes, we are in discussion with alternative subcontractors from our preferred supplier listings to continue the works.”

Caldwell employs around 50 staff from its Stoke head office and a North West base in Warrington.