Landround had warned in July that it was unlikely to meet forecast revenue levels for the year, and last month said that it had failed to resolve a dispute with an unnamed customer of its Buy and Fly! Programme, which would force the company to make a loss during the second half of the year rather than a profit.
Although it later said that a resolution may be reached, it warned at the end of October that this would not prevent it from posting a loss for the second half of the year.
In a statement to the London Stock Exchange today, the company said that "in respect to the consideration of the company's longer term options, the board of Landround resolved on Friday 21 November 2008 to appoint administrators".
Shares traded on the AIM have been suspended today, but were last valued at two pence.