Administrators from insolvency specialists Begbies Traynor, in Leeds, have been appointed to Leeds-based residential and commercial property firm SRM Holdings, together with 37 of its subsidiaries.

The main creditors are said to be most of the major UK high street banks and debts are reported to be in the region of £50m.

SRM Holdings has its headquarters in Brewery Wharf, Leeds.

It owns a portfolio of more than 500 properties, mostly flats in the city, and employs about 30 people.

A statement issued by Morris Properties said: "Due to the severe downturn in the property market coupled with the lack of liquidity in the financial markets, the group finds itself in a position where it can no longer service its debts and has had no choice other than to call in the administrators for parts of the group of companies.

"We are providing as much assistance as possible to the administrators to protect our creditors and staff."

A spokesman for Begbies Traynor confirmed that Bob Maxwell, John Kelly and Rob Sadler had been appointed as joint administrators.

It is not known what will happen to the staff employed at the businesses which have gone into administration.

In 2007, property entrepreneur Mr Morris was named among the top 10 richest people under 30 in Britain, with an estimated fortune of £69m.

Mr Morris was the leading shareholder in the Yorkshire consortium that was in charge at Leeds United for 10 months from March 2004.

Earlier this year, it was revealed that almost 60 property investors were taking legal action against the firm run by Mr Morris. The house buyers blamed Morris Properties for them losing money on properties now valued at less than they paid for them.

At the time, Mr Morris said the investors had bought at the height of the market and now wanted someone to blame.

He said the company had a low number of customer complaints, adding: "We have always talked to customers but we get some incredibly greedy people who spoil it for everyone else."

In August 2007, Mr Morris suffered minor facial injuries in a shotgun attack while driving in Moortown, Leeds.