The administrators concluded that it was not possible to continue to operate the Kirkcaldy-based business while a buyer is sought. Therefore the decision was made to make 247 employees, the vast bulk of the workforce, redundant.

A small number of employees have been retained to assist the administrators.

The long-established Havelock Europa business, which was listed on the stock market for decades, was reborn as Havelock International after being bought out of administration last summer.

Last year’s deal had at that stage saved the jobs of a 300-plus workforce engaged in design, manufacture and installation.

David Baxendale and Zelf Hussain of accountancy firm Pricewaterhousecoopers (PWC) have been appointed joint administrators.

Mr Baxendale said: “The company has faced a challenging trading environment for some time, and the directors have concluded that there is no longer any reasonable prospect for the company to continue to trade. Prior to our appointment, we explored ways that the business might continue to operate while a buyer was sought.

“However, regrettably this has not proved possible and it has therefore been necessary to make 247 employees redundant with immediate effect.”

He added: “Our priority is to ensure that all employees are assisted in processing their redundancy claims as a priority.

“We will be in further contact with all staff as soon as possible and will outline the support available to complete redundancy payment forms.”

“Advice and assistance will also be available from Jobcentre Plus and PACE [Partnership Action for Continuing Employment].”

There were fears over the future of the company after staff were called to a mass meeting yesterday. They were told to report back at 10am this morning when it was hoped more information would be available.

Staff told of their shock after press reports confirmed the decision prior to today’s meeting.

Employee Bill Dickson told The Courier: “I am absolutely gobsmacked. It’s ridiculous. We were always hoping that there was going to be some miracle, but workers were told to come in at 10 o’clock and it’s all over the papers, so it’s just inevitable what’s going to happen.”

The GMB union said the anger of workers is “entirely justified”.  

GMB Scotland organiser Allison Cairns added: “There are serious questions to be answered as to how the company was allowed to get to this point without the workforce being warned or consulted.  

“The fact that redundancies were pre-briefed as an ‘Exclusive’ to a national newspaper before the workforce were informed is a disgrace and a grave error by the administrator, PriceWaterhouseCooper.

“The plain fact is that this factory does not need to close. There is a quality product here for a buyer willing to make this business work.  

“The consequences if a suitable buyer cannot be found will be simply dire for Fife, for what remains of Scottish manufacturing and worst of all for the 250 people employed here, some of whom will have worked here for a lifetime, all of whom are now faced with being left with nothing.

“GMB Scotland will do everything in our power to support and assist our members at this time.”

Business minister Jamie Hepburn said: “Our immediate priority is the staff at Havelock International Ltd and we will do all we can to support them, their families and the wider community at this difficult time.

 “Scottish Enterprise and partners had been working closely with Havelock International Ltd to explore all possible options, but unfortunately a positive solution could not be found to turn the company’s situation around. Scottish Enterprise will continue to work with all those involved to understand the potential options for the company going forward and explore all possibilities to help those workers who have been made redundant to secure alternative employment as quickly as possible.

“Our Partnership Action for Continuing Employment initiative is engaged and providing assistance to affected staff.”