A total of 50 jobs have been lost as a result, the Shetland News has reported.
The company, which is based in Shetland, was handed over to KPMG earlier this week after it ceased trading. Just nine staff remain as they assist the administrators with existing contracts and site maintenance.
Speaking to the paper, Joint administrator and KPMG's head of restructuring in Scotland, Blair Nimmo, said: "MK Leslie is a well known firm with a strong reputation in Shetland and the north of Scotland.
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"However the company has suffered through continued economic challenges and was directly affected when a number of its customers went out of business.
"Unfortunately on our appointment we had no option but to make a number of immediate redundancies.
"We will be working with all affected staff to help them find the support they need to find new employment and thank all involved for their co-operation in this difficult time."
MK Leslie was established in April 1983 by Keith Leslie and expanded to employ almost 60 people, with 30 people based in Shetland and 29 in Inverness.
Mr Leslie said a fall in council contracts, tight margins and a large debt burden of around £500,000 from contractors had affected the business over the last two years.
MK Leslie specialised in plant hire, construction, civil engineering, pipeline construction, landfill development and demolition services.
(JP/CD)
