Wordsworth Holdings, the UK company that owns Barford Site Dumpers and Fruehauf tipper trailers, has gone into administration.
The administrators, Deloitte, said the Fruehauf and Barford businesses had been profitable in the past but had both been hit by a significant fall in demand. The plan is to continue trading and find buyers for the businesses, which are based in Grantham, UK.
Barford is one of the most famous names in UK construction equipment, with a history going back to 1937 when the Aveling-Barford company was formed. Its range of site dumpers goes up to 10 t.
Company chairman, Duncan Wordsworth, told the Grantham Journal; "We have survived two previous recessions. However, this last recession has been unprecedented in both the speed and the depth with which it hit.
"We believed that the actions we had taken during the last two years were going to be enough to save the business, but with the uncertainty surrounding the forthcoming election we have found that orders for our products have virtually stopped.
"We are bitterly disappointed that having survived for two years of the recession we appear to have failed at the final hurdle."
Chris Farrington, a joint administrator and partner at Deloitte, said; "The Fruehauf and Barford Site Dumpers businesses have particularly strong market positions and a reputation for innovative products.
"They have historically been profitable but, in the current economic environment, have been faced with a significant reduction in demand, particularly Barfords. However, they are both well positioned to benefit from improved market conditions."
The businesses, which are based in Grantham, employ around 225 people.
In addition to the Barford and Fruehauf businesses, Wordsworth ownes Huffey Group (prison furniture and fittings) and Stanhay Webb (agricultural seed drills).
Mr Farrington said; "The Huffey Group and Stanhay Webb businesses have been less severely affected, particularly Huffey Group which is benefiting from the government's ongoing prison building programmes."
Deloitte was appointed as administrator on 11 March and three of its staff are acting as joint administrators: Chris Farrington, Dominic Wong and David Langton.