Administrators from business advisers Quantuma have been appointed at QED Developments.
It is thought they will now try to sell the £11.5 million redevelopment to raise money need to pay off creditors.
Set up by former rugby player turned developer Liam Wordley in 2013, QED was the building contractor that took on the job of turning the historic factory into 115 new homes. The building had stood derelict for two decades before work started.
The Paul Stret project is around 70 per cent complete but work ground to a halt earlier this year when the company ran into financial difficulties blamed on cost over-runs and funding challenges.
QED has an annual turnover of more than £350,000 from the completed apartments that have already been rented out.
The company did not employ any staff so there are no redundancies as a result of the administration.
Quantuma has revealed it was appointed as administrator to the business on November 12. The process is being led by Quantuma managing partner Carl Jackson and director Simon Campbell.
Simon Campbell said: “The business has experienced cash flow difficulties as a result of the complex building project.
"As a result, we have been appointed administrators to the business, and will conduct a thorough review of the circumstances and options for building out the property, ensuring we achieve the best possible outcome for creditors.
"This is an ambitious and attractive project in a land-mark location which has every chance of success once it has been stabilised.”
The ambitious project to bring a slice of Wolverhampton's industrial history back to life had been praised by the city council as an example of the work going on to regenerate the area.
The building is seen by thousands of motorists from the Penn Road island every day.
From the late 19th century, most of Sunbeam’s bicycle, motorcycle, and some motor car production was carried out at the site, dubbed Sunbeamland.
When production was switched a to a factory in Fallings Park in the 1950s, the lockmakers C E Marshall occupied the site.