Yorkshire modular homebuilder Ilke Homes has entered administration after failing to find a buyer.
Clare Kennedy, partner and managing director of consultancy AlixPartners, confirmed this Construction news that today (June 30) company administrators had been appointed for Ilke, at the request of the company’s administrators.
A statement released by AlixPartners said the move would see the “immediate closure” of the company’s factory in North Yorkshire, ending “all activities at the site”.
This will mean that the “significant majority” of the company’s 1,150 workers will be laid off.
The move follows Ilke’s decision earlier this month to halt production at its factory and begin looking for a buyer. The firm had been delayed for more than two months in presenting its latest accounts, due to auditors wanting more funding on its balance sheet.
The company said at the time that it was “exploring the sale of the business as volatile macroeconomic conditions and issues with the planning system complicate fundraising and home delivery”.
He added: “The company and its advisers have been exploring fundraising options and existing backers are hopeful of securing a future for the business through a sale or investment.”
The firm recently said it had a number of bidders interested in buying it and described a notice of intention to appoint administrations as a “protective measure” as it moved forward in talks with investors. However, talks of a sale ultimately fell through.
Ilke administrators said the collapse followed an “extensive exercise” by the company to seek a new injection of capital or a buyer, but “unprecedented inflation and a lack of land supply linked to the processes of planning” meant that the business had not been able to secure the necessary. more investment, despite a “strong product and pipeline”.
Founded five years ago, Ilke Homes is owned by TDR Capital, Sun Capital and Fortress Investment Group. The company posted a pre-tax loss of £34m on turnover of £12.7m in its latest accounts, for the year to 31 March 2021.
Kennedy said: “This is an incredibly difficult time for everyone associated with Ilke Homes, and in particular its employees, who have worked tirelessly alongside management over the past few months to find a solution.
“Unfortunately, the market and economic headwinds have proved too strong to overcome, which has led to today’s appointment. Our focus now is to help all stakeholders, employees, suppliers and customers alike, find the best possible outcome in this undoubtedly difficult situation for all.”
Ilke’s struggles follow a string of other recent failures by specialist modular companies. L&G Modular Homes closed earlier this year after posting six straight years of losses since its launch.
Urban Splash’s modular spin-off also entered administration in May 2022, citing operational problems at its Alfreton factory, and Caledonian Modular collapsed last March, before being bought by JRL a weeks later
