Gledhill got into difficulties as its major customers, large house builders such as Taylor Wimpey and Persimmon, struggled in the credit crunch.
Administrator Tenon Group has been called in and an estimated 30 jobs will be lost.
The company, which employs around 275 people overall, is divided into two parts – Gledhill Water Storage primarily focused on the new build housing market and Gledhill Building Products mainly dealing with domestic and commercial retrofits.
“The new build-focused part of the business has gone into administration due to the downturn in the housing market, which has fallen off a cliff in the last few months,” said chief executive Mark Foster.
“We have lost around 30 jobs but have managed to accommodate around 60 people from the Water Storage business on the Gledhill Building Products side.”
Mr Foster continued: “The Building Products part of the business has been performing well and we believe making this difficult decision will help to safeguard the future of the company and we will come out of this in better shape.”
Gledhill began manufacturing copper water cylinders in 1926, has been based in Blackpool since 1972 and has 15 other manufacturing centres across the UK.