Huddersfield University chiefs are pressing ahead with plans for a new £27.5m flagship building – despite the potential collapse of the parent company of the contractor earmarked to build it.

GB Group Holdings Ltd is poised to appoint administrators after running into financial problems. Its subsidiaries include Wakefield-based GB Building Solutions, named as contractor for a striking new teaching building which the University plans to build on a prominent site at the Queensgate campus.

A statement to the stock exchange by one of GB Group Holdings’ shareholders, housebuilder MJ Gleeson. confirmed that GB Holdings Ltd intended to appoint administrators. MJ Gleeson has a 25% stake in the group, representing an investment of £4.9m. Gleeson said this investment “is now considered to be at risk”.

In a brief statement, the university said: “The university has been informed of the news regarding GB Solutions. Preparations for our new building continue and we are progressing with our planning application.”

The new building, which it is hoped to complete in September, 2016, will house the university’s School of Law and School of Music, Humanities and Media. The site on which it will stand – opposite Shorehead roundabout – was cleared last year with demolition of the former sports hall and the historic Brunswick Building.

The scheme, drawn up by Huddersfield architects AHR, has been submitted to Kirklees Council for approval.

Callers to GB Building Solutions in Wakefield heard a recorded message saying the office was closed. A recorded message at the group’s Surrey headquarters asked callers to leave their details for someone to get back to them. The GB group website is no longer available.

GB Group, which employs about 200 people at seven locations across England, covers all aspects of property and construction, including site finding and development funding, full design, management and construction of new and refurbished facilities, through to after care and asset management.

GB Building Solutions specialises in care, student accommodation, residential, hotel and leisure, education and commercial sectors.