Mrs Livingstone is seeking an urgent meeting with KPMG, the company called in last week to act as administrators for the Thornton-based company.

She has also voiced concerns for the existing workforce and about development sites owned by Thomas Mitchell within her constituency – including the old McMillan pudding factory in Dysart.

Almost 100 jobs are at risk, with the current recession and a fall in house sales being blamed for the decision.

Thomas Mitchell Group is a family-owned housebuilder which employs approximately 95 staff and comprises four group companies:

• Thomas Mitchell Homes Limited – the main housebuilding business in the group which currently has sites in Glenrothes and Rosyth in Fife.

• Thomas Mitchell Timber Frames Limited – manufactures timber kits for the homes business and other parties.

• Thomas Mitchell Developments Limited – the property investment division.

• Addacabin Limited – a stand-alone business that hires out cabins and modular buildings to construction companies and local authorities.

A separate company which holds investment properties and land for future development by the Homes business – Mitchell Thornton Limited – has also been affected.

Thomas Mitchell Group Limited was formed in 1958 by the father of current directors Alen and Graeme Mitchell.

Last year the group had an annual turnover of £29.8m compared to £38.9m in the previous year and sold 143 homes compared to 115 in 2008.

The Homes company was affected by the unprecedented downturn in the housebuilding sector which had an adverse impact on house prices, margins and land values. The Group has been suffering from significant cash flow pressures, which has led to the directors moving to appoint administrators.

While it is still an early stage in the administration, various options are being considered including the sale of some or all of the businesses.

Blair Nimmo, joint administrator, said: "It is no secret that the UK and Scottish housebuilding sectors have been hit hard by a number of factors in the economic downturn, all of which have had a detrimental effect on the day-to-day running of this well-established and family-run business."

All employees have been informed and the administrators are working with the companies' directors to maximise the return from the group's assets.

Anyone with an interest in the assets of Thomas Mitchell Group Limited or its related subsidiaries should contact Blair Nimmo on 0131 222 2000.

Mrs Livingstone said: "We have been told that it will take a couple of weeks for the administrators to sort things out, so we are asking for a meeting as soon as possible to see what, if anything can be done.

"It is vitally important that we keep as many jobs in the construction industry as possible as the economy is beginning to show improvement."

Key Facts:
Turnover: Over £20m
Staff: 100
Men at the top: Alen Mitchell, chairman, whose father founded the company; Graeme Mitchell, operations director.
Existing developments: Markinch, Glenrothes, Rosyth, Bathgate, Gartcosh
Future developments: Dunfermline, East Kilbride, Mid Calder