Building services firm Rok appointed administrators today in a move which puts around 3,800 jobs at risk.
PwC said it was looking for a buyer for the self-styled "nation's local builder" after the Exeter-based firm fell into difficulties in meeting its "financial obligations".
Mike Jervis, joint administrator and partner at PwC, said: "Employees will naturally be concerned about their position, but they will continue to be paid if they attend work and perform their duties as normal."
The announcement comes just months after Rok revealed sizeable half-year losses, and an independent review by accountants BDO uncovered serious failings at its plumbing, heating and electrical business.
The group follows in the footsteps of rival social housing firm Connaught, which entered administration in September - leading to some 1,400 redundancies.