A Nidderdale steel firm has gone into administration, according to official documents.

Harrogate Steel Company Ltd, which is based on Mill Hurst Business Park just outside Dacre, was founded by Dan Worsell and Richard Searle in 2016.

Mr Searle stepped down as a director at the end of 2023. 

The company, whose website says it is “big enough to trust but small enough to care”, offers in-house design, fabrication and installation services for construction projects as far afield as Bristol and London.

Local projects have included the construction of Paradise restaurant at Daleside Nurseries in Killinghall, and the filming gantry above the Barclay LED stand at Harrogate Town AFC. 

According to the latest available accounts for the company, in the year to the end of December 2022, the business employed an average of 28 employees.

It owed creditors more than £1 million and had net assets totalling just over £270,000.

Online public records journal The Gazette said Andrew Ryder of County Antrim-based insolvency practitioners JT Maxwell was appointed administrator on April 10.

The Stray Ferret has attempted to contact Harrogate Steel Company.

Read more:

• Flaxby housebuilder enters administration
• Masham’s Black Sheep Brewery to enter administration
• Collapsed Harrogate firm Amvoc set to enter administration

In this article, which is part of a series on the 12 stories in the Harrogate district that shaped 2023, we look at some of the larger companies that ran into difficulties over the year.

What could loosely be termed “economic headwinds” have caused trouble for thousands of companies around the UK in recent years, and in 2023 the storm hit several large local employers. 

Some were rescued, but others sank without trace. Here, we take another look at some of the bigger companies that hit the rocks over the last 12 months. 

Amvoc

Back in March, as many as 230 people lost their jobs after Harrogate telemarketing company Amvoc crashed into administration.  

Amvoc’s clients included some big names, such as BP, Barclays and Virgin Media, as well as the Conservative and Liberal Democrat parties. 

But administrator Gareth Lewis, of Lewis Business Recovery and Insolvency, said in his report that the company had entered into a company voluntary arrangement in 2017 due to “cash flow difficulties” because of the loss of a major customer and “significant bad debt”. 

Amvoc’s former head office on Cardale Park in Harrogate.

Amvoc paid off the bad debt, but only just in time for the start of the covid pandemic. The company, which had unusually high staff turnover – 20 to 30 employees left and started each month – couldn’t cope with lockdown, and even after restrictions were eased, its offices were closed by Public Health England in August 2020 after 50 staff contracted coronavirus. 

Meanwhile, many of Amvoc’s customers held back on projects due to uncertainty caused by the pandemic, leading to an unsustainable trading position. 

Farmison

In April, high-end butcher Farmison went into administration, threatening the jobs of its 100 or so employees. This time, though, the story had a happier outcome.  

The Ripon-based firm, which was founded by John Pallagi and Lee Simmons in 2011, had an impressive client list that included Harrods, Fortnum & Mason, Selfridges and Michelin starred restaurants. 

Major cashflow problems saw it fall into administration with debts of £7 million, but it was quickly bought out of administration by a consortium led by Andy Clark, former chief executive of Asda, for an undisclosed sum. 

Farmison is now back in business, with a leaner staff of 60 under former Marks & Spencer managing director Andy Adcock as chief executive. It relaunched its Cut by Farmison butcher’s shop at its Ripon headquarters earlier this month, plans to open more shops in a bid to diversify, and aims to increase annual turnover to £20 million. 

Black Sheep Brewery

Challenging economic conditions were also behind the difficulties that corralled Black Sheep Brewery into administration in May. 

The Masham company headed off what it called a “local employment catastrophe” by selling out to London investment firm the Breal Group for £5 million, saving about 50 jobs, including that of chief executive Charlene Lyons. 

Black Sheep Brewery’s CEO, Charlene Lyons.

Ms Lyons said that Black Sheep was not the brewing industry’s first casualty and warned it would not be the last. Speaking in June, she said: 

“In the last 12 months, 45 breweries entered insolvency in the UK, a three-fold increase on the previous year, as the cost-of-living crisis has squeezed household disposable income. 

“This has had an extreme and adverse effect on all brewers’ sales, at a time when their own costs and inflation are high. Black Sheep has not been immune to these factors, leading it to the administration process. It is highly likely that many more will follow in the coming months.” 

Ilke Homes

Around 1,100 people lost their jobs when Ilke Homes collapsed into administration in June, owing nearly £400 million to more than 300 creditors. 

The company, which manufactured modular housing in a huge factory at Flaxby, near Knaresborough, had been toasted as a stand-out success story on the region’s business landscape. 

Established in 2017, it built up a client base that included major institutional investors, housing associations, developers and local councils.  

In 2021, Ilke Homes raised £60 million in investment, and a year later, it raised a record-breaking £100 million from new and existing shareholders, following successive years of triple-digit growth. 

But despite a healthy-looking order book, it eventually ran into financial difficulties it attributed to “volatile macro-economic conditions and issues with the planning system”.   

The company said it needed additional funding to build its £1 billion pipeline of 4,200 new homes, but that wasn’t forthcoming, and so it was forced to fold. 

Most creditors saw little or nothing of their investment, including government-owned Homes England, which is believed to have received just 0.01% of the £68 million it was owed. 

The demise of one of the area’s largest employers was naturally not without drama. More than 600 employees took legal action over the way the redundancy process was managed, hoping for compensation of up to eight weeks’ pay. 

And in August – just two days after the firm’s assets had been auctioned by administrators – thieves stole “a large amount of equipment” from its factory, just off junction 47 of the A1(M). Bizarrely, they even refused to leave the site and continued to load up vehicles, even after the police arrived on site. Investigations are believed to be ongoing.

Read more:

• No 11: Curzon closure does not signal the end of cinema in Ripon
• No 10: Harrogate becomes political battleground in 2023
• No 9: River Nidd pollution and politics take centre stage

Unsecured credits and HMRC are unlikely to receive any payment after the collapsed of failed Harrogate company Amvoc, administrators have said.

The telemarketing company, which was based at Cardale Park, collapsed and was placed into administration in March this year.

In a latest administrators report published this week, Gareth Lewis, Lewis Business Recovery and Insolvency, said it is anticipated funds will be available to pay former staff.

However, HMRC, which is classed as a “secondary preferential creditor”, and unsecured credits are expected to receive no money.

According to the report, employees are owed £233,507.52 in wages, holiday pay and pension contribution arrears.

Meanwhile, HMRC is owed £1.1 million in unpaid VAT, unpaid employees PAYE and national insurance, student loan deductions and industry scheme deductions.

Mr Lewis said in his report that it is unlikely that any repayment will be made.

He said:

“If funds are available to pay a dividend to the secondary preferential creditors, this claim will be adjudicated accordingly.

“However, at present, it is not anticipated that there will be sufficient funds to do so.”

Mr Lewis added that there was “no likelihood” that unsecured creditors, who were previously estimated to be owed £868,267, would receive payment. 

According to the report, equipment from the company’s old offices on Cardale Park, such as computers, desk and chairs, had now been sold.

‘Cash flow difficulties’

Damian Brockway set up Amvoc, the trading name of A Marketing Vocation Ltd, from a small office in Dacre in 2010. It sold telemarketing services, initially in the legal sector, and grew rapidly, moving first to Pateley Bridge and then to large offices at New York Mills near Summerbridge.

It opened a new head office on Cardale Park in Harrogate in 2015, a facility in Leeds in 2018 and an office in Manchester in 2022.  It also had plans to expand to London.

At the time of its collapse, Amvoc employed 230 staff.

Staff were left shocked on March 17 this year when they received a late night email from Mr Brockway saying “all our offices are closed with effect from tonight”. It went on to blame “covid debts”.

Mr Lewis said in his administrator’s report that in September 2017, the company entered into a company voluntary arrangement as a result of “cash flow difficulties” because of the loss of a major customer and “significant bad debt”.

Read more:

• Administrators reveal state of Harrogate firm Amovc’s finances
• Hundreds of job losses as Harrogate company goes under
• Collapsed Harrogate firm Amvoc set to enter administration

A new document published by the administrators of failed housebuilder Ilke Homes has revealed that its debts are far greater than previously believed, and that employees stand to gain little from any settlement. 

Ilke Homes collapsed into administration in June, causing the loss of 1,100 jobs and leaving a long list of creditors wondering when they might get any money back – and how much they might receive. 

A Statement of Affairs published on the government’s Companies House website two weeks ago appeared to show that the company left debts of about £320 million, but it transpires that that figure applied only to Ilke Homes Limited (IHL), which is one of three companies currently in administration by AlixPartners. 

The other two, Ilke Homes Land Limited (IHLL) and Ilke Homes Holdings Limited (IHHL), were part of the same operation and have also left debts, of £52.8 million and £23.9 million respectively. 

The total combined sum of the three companies’ debts amounts to £397.95 million. 

Read more:

• Collapsed Flaxby firm Ilke Homes owed £320m to 300 creditors
• 600 Ilke Homes staff join legal action over job losses
• Ilke Homes: More than 1,000 staff made redundant

The document also details how much various creditors are likely to receive. For example, IHL owes 1,061 employees a total of £724,614 in the form of holiday pay and pension arrears – an average debt of £683 per person – but the statement lists this debt as being payable at “nil” pence in the pound, meaning they will get nothing. 

By contrast, secured creditors will receive the full amount owed to them. For example, IHL is expected to repay the whole of its £221,000 debt to Barclays Bank, but none of its £2.2 million debt to HMRC. In all, it is expected to repay £326,000, or just 0.1%, of its £321 million total debt. 

IHLL is expected to repay its debts to secured creditors Redlawn Land Ltd (£7.7 million) and Barclays Bank (£5.4 million) in full. Claims from HMRC of £279,743 and from former employees of £43,258 are also expected to be paid in full, but other unsecured creditors are expected to receive just £694,000 of the £39.4 million they are owed. 

In the case of IHHL, the amounts of repayments to unsecured creditors, who are collectively owed nearly £23.9 million, are listed as “uncertain”. 

The three Ilke companies collectively owe Homes England £68.7 million, a sum which appears on all three of their balance sheets due to a system of cross-guarantees. Of this debt, IHL will repay £105,000, IHLL will repay £1.005 million, and IHLL will repay just £30,000. In total, Ilke will repay just £1.14 million of its £68.7 million debt to the government agency. 

In all, the three Ilke Homes companies are expected to pay off £15,478,001 of their debts – or just 2.9% of the total. 

This story was updated on September 20. A previous version wrongly stated that Ilke’s total debts exceeded half a billion pounds. This was because the £68.7 million that Ilke owes to Homes England appears as a liability on the balance sheets of all three Ilke companies, as they have all guaranteed it, and so was counted three times instead of just once.