M&D's has gone into administration leaving 165 employees redundant before payday.
Bosses at the theme park, based in Motherwell, blamed a "challenging few years" and the coronavirus lockdown for the collapse.
Workers had their contracts terminated on Thursday just weeks after being told they were being put on furlough.
In an email sent out to staff, M&D's bosses said they had been 'suffering financial issues for some time' which were 'further exacerbated by the Covid-19 pandemic'.
It is understood M&D's bosses were in talks to sell the theme park earlier this year, but the sale fell through due to the Covid-19 pandemic.
Leonard Curtis Business Rescue & Recovery have been appointed Joint Administrators of the Company.
As reported by the Daily Record, a letter by them reads: "The Company’s director has taken the extremely difficult decision to appoint Administrators.
"Due to the current financial position of the Company, it is with regret that I must inform you that you that your contract of employment with the Company is being terminated with immediate effect.
"Due to the current financial circumstances, payment for your April salary cannot be remitted on Friday 24 April.
"Instead, you will require to claim arrears of pay for your April salary from the RPS."
A Leonard Curtis Business Rescue & Recovery spokesperson said: "After reviewing the Group’s options, and in view of the lack of trading income and access to additional external funding, the Director has taken the extremely difficult decision to appoint Administrators to the Group.
"The Group, which employs 170 staff, has now formally ceased trading and unfortunately 165 employees have been made redundant with immediate effect."
The Alona Hotel, also operated by M&D Leisure Ltd, has also been placed into administration.
