Urban-i has called in administrators KPMG which has blamed a cash shortage for the company's demise.

The firm, based in Lazarus Court, is the residential arm of Lazarus Properties.

Lazarus is involved in several leisure developments in Doncaster including a new £12million hotel in High Fishergate. Earlier this year it bought the old Odeon cinema in Hall Gate.

Lazarus said its other businesses were not affected.

However, one of Urban-i's creditors said the decision to place the firm into administration could impact on other businesses.

Urban-i's two assets - the former John Davidson pipe works in Kirk Sandall and a partially built housing development in York - could now be sold off by KPMG in a bid to pay off some creditors.

Three staff have been transferred to other firms within the group. Urban-i's sponsorship deal with Doncaster Racecourse - believed to be for five years - will continue.

Lloyd Nicholson, director of Lazarus, revealed that the firm had this week bought the freehold of the Range home improvement centre, in York Road, and highlighted the deal as an example of the company's commitment to Doncaster.

He said land earmarked for a £35 million urban village at Grove Farm, Kirk Sandall, which Urban-i was to be involved in, was never owned by the company and would proceed when the housing market picked up.

Mr Nicholson said: "The asset at Kirk Sandall is a small building only covering about one acre.

"All the other Urban-i developments are finished. The only one that has been mothballed is Dial House in Sheffield.

"Everything else was transferred from Urban i to Lazarus but there was no reason for the operation."

Terry Hesslewood, 63, owner of Delvebright Ltd, based in Cedar Court, Balby, said his firm had received £5,000 of the £16,000 it was owed by Urban-i before administrators were called in.

He said the company, which employs up to 35 staff depending on the amount of work, had carried out plastering, petition walling and dry lining work for Urban-i over the last three years.

Housing developments it had worked on included in Sprotbrough Lane and Mere Lane, Armthorpe.

Mr Hesslewood said: "The first intimation we had was about August.