TopHat hit with winding-up petition from developer

If a winding-up petition is successful, a company’s assets can be sold and funds are paid to the petitioner and “any other creditors”, according to the government’s website.

The legal action is the latest setback for TopHat. It announced earlier this year it was planning to make around 70 staff redundant and was pausing opening its 650,000 sq ft new factory in Northamptonshire.

Harworth presented a petition against TopHat Enterprises, a Jersey-based firm, and TopHat Communities, which is based in Derby, on 1 July.  The notices were initially published in The Gazette on 15 July, then republished last Friday.

The details of Harworth’s dispute with TopHat is unclear at this stage.

Rotherham-based Harworth specialises in brownfield regeneration and develops land for warehouses and housing.

The firm owns and manages around 100 sites in the North of England and the Midlands, according to its website.

Harworth reported around £40m profit in its 2023 financial year, but its revenue more than halved, to £72.4m.

TopHat has racked up significant losses since its launch in 2016. In its last reported full year to the end of October 2022, TopHat Industries, which produces the group’s modular homes, posted widening pre-tax losses of £20.4m.

It comes as the Category 1 modular sector was rocked last year by the demise of Ilke Homes and Legal & General Modular Homes. House by Urban Splash, a joint venture between developer Urban Splash, Japan’s Sekisui House and Homes England, also went into administration in 2022.

TopHat’s investors include FTSE 100 house builder Persimmon and Aviva. Persimmon invested £25m and Aviva £20m last year for undisclosed stakes. Goldman Sachs completed a total fundraising round of £70m.

The modular firm also took a £15m loan from Homes England last year.

Andrew Shepherd, managing director of the Derby-based company, left in May. 

TopHat and Harworth declined to comment.