Construction firm Crummock has told its employees the company has gone into receivership with the loss of 287 jobs.

Employees at the civil engineering company, based near Bonnyrigg in Midlothian, were informed on Friday that cash flow problems had led to claims from creditors.

Accountancy firm Johnston Carmichael has been appointed as receivers and the company has ceased trading.

Midlothian Council said the collapse will be "a real blow to the local economy and to the council."

Matt Henderson, restructuring partner at Johnston Carmichael, said: "Crummock is a long-established construction business which, like many in the industry, has suffered from reduced margins in recent times.

"In recent months it has also encountered cashflow difficulties due to high retention levels, the tight margins within the sector and business specific issues."

"Unfortunately, the business was unable to raise the capital to enable it to overcome the current financial challenges it faces and we are now dealing with creditors' claims."

Midlothian Council's economic development leader said he would seek meetings with Crummock to discuss support for those who have lost their jobs.

Councillor Russell Imrie said: "We're shocked and saddened to hear a respected and well-established local employer Crummock is to close with the loss of nearly 287 jobs.

"This is a real blow to the local economy and to the council.

"We've had a positive working relationship with the firm for probably three decades now. Indeed, Crummock is one of our framework contractors although there's no outstanding contracts currently.

"We will be seeking a meeting with Crummock as soon as possible to discuss what support we can give at what is obviously a very distressing time for its workforce and management.

"No amount of words can replace the jobs and put food on the table."

In March this year Crummock said it expected to have a turnover of £34m.

However the company's accounts from March last year noted the abscence of contracts from the Scottish Government and shrinking local authority budgets were the biggest risk to the business.

Crummock has been involved in a number of civil engineering projects around Scotland, including the installation of concrete slabs in St Andrews Square for the Edinburgh Trams.

The firm also performed a number of road construction contracts in Midlothian.