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TopHat to wind down modular operations
TopHat has announced it is winding down its modular housing operations, leading to most of its factory staff being made redundant.
The Goldman Sachs-backed firm said a “continued reduction” in its pipeline had led to the decision.
The wind-down will allow the group to “assess all future options”, it said.
According to its last filed accounts to October 2022, TopHat had 212 people working at the factory business.
News of the wind-down was first reported by specialist newsletter Modular Monitor.
The company, which operates a 125,000 sqft factory near Derby, said in a statement: “In response to the challenging market environment over the last several years, TopHat has been gradually reducing its workforce.
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“Unfortunately, due to the continued reduction in future pipeline, TopHat is in the process of making most of the factory staff redundant by following a statutory consultation process.”
It comes after 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, Japanese house builder Sekisui House and Homes England, also went into administration in 2022.
In its statement, TopHat said all factory orders will be completed.
“This orderly wind-down of volumetric operations will put the business in a position to assess all future options,” it said.
“It is our strong belief that there is a continued need for Category 1 and Category 2 modular in the UK and we hope that we can capitalise on this in the future,” it added.
The latest news is among a series of difficulties TopHat has faced this year.
In August, it was hit with a winding-up petition by developer Harworth, which was subsequently dismissed. In the same month, Persimmon said it was writing off its £25m investment in the modular firm.
In March, TopHat revealed it was planning to make around 70 staff redundant and was pausing opening its 650,000 sqft factory in Northamptonshire.
Managing director Andrew Shepherd left TopHat in May.
The modular firm took a £15m loan from Homes England last year.
US investment bank Goldman Sachs made an initial £75m investment in TopHat in 2019 and has since committed further funds.
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