More than 80 employees of Flaxby-based Ilke Homes are to take legal action against the firm after it entered administration.

The company appointed AlixPartners as administrators on Friday after it failed to find a buyer or new investment.

In a statement, the administrators said the move will see the immediate closure of the manufacturing facility in Flaxby and all site activities are to cease.

It added that a “significant majority” of the company’s 1,150 staff would be made redundant with only a small amount remaining to help oversee the administration process.

Today, Manchester-based law firm Aticus said it has been instructed by 80 staff members, 60 of whom are from Flaxby, to investigate concerns around how the redundancy process was managed.

It said this would involve whether ex-employees were eligible to claim for a protective award claim against the company.

Aticus said if its clients were able to successfully pursue a claim, those involved would receive up to eight weeks’ worth of pay in compensation, with a cap of £571 per week.

Edward Judge, partner at Aticus Law, said:

The firm is also currently representing around 100 staff of former Harrogate-firm Amvoc, which collapsed back in March.

Read more:

• Flaxby housebuilder enters administration


• Knaresborough housebuilder up for sale as operations paused


• Staff sent home as Knaresborough housebuilder seeks urgent investment