Modular house builder Ilke Homes enters administration with majority of staff to be made redundant

In a statement, the company said it had appointed Clare Kennedy, Catherine Williamson and Deborah King of AlixPartners as joint administrators following "an extensive exercise" to seek a fresh injection of capital or new buyer.

The statement continued: "With significant incremental investment the business returned to growth following the Covid pandemic, but then faced the challenges of unprecedented inflation and a lack of land supply linked to planning processes.

"As a result, despite a strong product and pipeline, the business has not been able to secure the further investment needed to take it forward.

"Regrettably, this means the immediate closure of the manufacturing facility at Flaxby in North Yorkshire and all site activities will cease. As a result of this difficult decision the significant majority of the Companies’ 1,150 staff will be made redundant with a small number being retained to assist the Administrators in winding up the Companies’ affairs."

Clare Kennedy, joint administrator and partner at AlixPartners, said: "This is an incredibly difficult time for all associated with Ilke Homes, and in particular its employees, who have worked tirelessly alongside management over recent months to find a resolution.

"Unfortunately, the market and economic headwinds have proven too strong to overcome, thus leading to today’s appointment.

"Our focus is now on helping all stakeholders, employees, suppliers and customers alike, to find the best possible outcome in this undoubtedly difficult situation for all."

Nigel Banks, R&D director at Ilke Homes, called the situation "a very sad day."

Writing on Linkedin, he said: "We completed over 40 sites in 5 years and have created great homes and communities for hundreds of families.
"Sadly today, our plane has run out of fuel... and it is landing with a crash that will impact many people inside and outside the business. I am truly sorry that this has happened."

He continued: "If you are growing your business, please reach out to the amazing people at Ilke Homes, they bring incredible experience with them and will be an asset to your business."

Earlier this month, the government-backed builder filed a notice of intention to appoint administrators, which gave it protection for 10 working days from creditors who might seek to take action against the firm to recover loans.