Collapsed Flaxby firm Ilke Homes owed £320m to 300 creditors

Ilke Homes, the modular house manufacturer based at Flaxby, collapsed owing nearly £320 million to more than 300 creditors.

The figures are revealed in a statement of affairs compiled by the administrators and published on the Companies House website yesterday.

The document said most of the debt – £227 million – is owed to “intercompany creditors”, which ultimately means the firm’s investors: Fortress Investment Group, Sun Capital Partners and TDR Capital, among others. 

Homes England, the government agency that funds new affordable housing, is also owed more than £68 million, and HMRC is owed more than £2 million. 

But much of the rest is owed to scores of small and medium-sized suppliers, mostly from the north of England, but some from as far afield as Glasgow, Kent and even Germany. Most appear unlikely to receive any repayment from Ilke’s assets. 

The debts range from £6 to a Dewsbury hardware company to £1.8 million to a Warrington wall insulation firm. 

Sixteen local creditors include Ripon plumbing supplies business Wolseley (£14,595), Thirsk-based steel supplier Tomrods (£13,871) and Knaresborough security firm K9 Patrol (£10,697). 

A total of £724,614 is owed to 1,061 employees in the form of holiday pay and pension arrears – an average debt of £683 per person. 

Ilke Homes, which was based close to junction 47 of the A1(M), went into administration in June, causing all 1,100 of its employees to lose their jobs.

Although it had a strong pipeline of more than 3,000 homes on order, the administrators, Clare Kennedy, Catherine Williamson and Deborah King of global consultant AlixPartners, said the firm had been hit by “unprecedented inflation and a lack of land supply linked to planning processes”, adding that “the business has not been able to secure the further investment needed to take it forward”.

The administrators were approached for comment about the newly-released statement of affairs, but have not yet responded.

Read more:

 

Equipment from Ilke Homes’ Flaxby factory to be sold

Equipment and machinery from Ilke Homes’ factory in Flaxby near Knaresborough will be put up for sale this month.

The modular house builder fell into administration in June after failing to find a buyer or further investment. A total of 1,150 staff were made redundant.

Administrators AlixPartners has commissioned Hilco Valuation Services to auction off a number of items of machinery on Tuesday, August 17 at 10am.

The equipment from the factory, which closed when the company fell into administration, will be sold online.

It includes electric hand tools, ladders, tipping skips and machinery such as automated wall panel lines.

In a statement last month, AlixPartners told the Stray Ferret that it was in the process of realising the company’s assets.

It said:

“The administrators are now working with a small number of retained employees to realise the assets of the business on behalf of creditors and are soliciting expressions of interest for any or all of those assets.”

Read more:

The factory at Flaxby was closed immediately after the company entered administration and all site activities ceased.

Administrators added the firm had “faced the challenges of unprecedented inflation and a lack of land supply linked to planning processes”.

Officials at Ilke Homes said previously that it needed additional funding to fulfil a £1 billion order book and to protect jobs, adding that new investment was needed to build its pipeline of 4,200 new homes.

For more information on the online auction, visit the Hilco Valuation Services website here.

Company involved in £46 million Harrogate district broadband installation ceases trading

A civil engineering company involved in the installation of a £46 million all-fibre broadband network in the Harrogate district has ceased trading with the loss of 165 jobs.

Leeds-based Makehappen Group Limited, which was working for CityFibre, the UK’s largest independent fibre infrastructure provider, appointed administrators Interpath Advisory last week.

The huge installation programme covering Harrogate, Knaresborough and latterly Ripon, was announced in 2020 and has been carried out on a street by street basis.

In response to the news, a spokesperson for CityFibre, said:

“We have been made aware that Makehappen Group has entered into administration.

“We would like to assure residents that work sites have been made safe, and we will remain in close conversation with our local authority stakeholders while we review our plans.”

Neil Morley and Howard Smith from Interpath Advisory were appointed joint administrators of Makehappen Group Limited on July 18.

A statement from Interpath Advisory said:

“In recent months, Makehappen experienced significant pressure on cashflow after a number of contracts were withdrawn by their customers. 

“As a result, the company was unable to continue trading and service its liabilities as they fell due, so after considering their options, the directors sought the appointment of the administrators.

“The company ceased to trade shortly prior to the appointment of the administrators. With no prospect of trade resuming, it is with regret that the joint administrators have made all of the company’s 165 members of staff redundant.”

Meanwhile, Mr Morley, said:

“There continues to be a number of opportunities, but also challenges for businesses involved in the building of fibreoptic broadband infrastructure across the UK and unfortunately, Makehappen was the latest casualty of these challenges.

“As we commence an orderly wind-down of the business, our priority will be to provide support to all of Makehappen’s employees, including providing them with all of the information they require to make claims from the Redundancy Payments Office.”

Read more:

 

Council pledges ‘comprehensive support’ to former Ilke Homes staff

North Yorkshire Council has pledged to offer “comprehensive support” to staff being made redundant at Ilke Homes.

The company, which is based off junction 47 of the A1(M), fell into administration on June 30.

Management consultants Alixpartners was appointed administrators after the company failed to find a buyer or further investment.

Since then, a total of 1,057 staff have been made redundant.

Cllr Derek Bastiman, executive councillor for open to business, said in a statement to a full council meeting this week that Ilke Homes staff would be offered “comprehensive support” after the administration decision.

Cllr Bastiman said the council would be working with York and North Yorkshire Local Enterprise Partnership and government to offer skills and financial advice to those effected by the collapse.

He said:

“We are working with the government and the York and North Yorkshire Local Enterprise Partnership to offer support to former Ilke Homes workers to help them secure employment or re-training.

“Alongside the LEP, we have taken a stall at a Department for Work and Pensions job fair later this month where will be providing information on skills bootcamps, self-employment and start-up opportunities, mental health support and financial advice.

“The job fair will also include a pre-information session for former ilke Homes employees aimed at helping them get back into the workplace or finding training opportunities if they wish to learn new skills.

“We will continue to offer support where we can through the DWP.”

Read more:

Ilke Homes’ factory at Flaxby was immediately closed following the company entering administration and all site activities ceased.

Administrators added that the firm had “faced the challenges of unprecedented inflation and a lack of land supply linked to planning processes”.

Officials at Ilke Homes said previously that it needed additional funding to fulfil a £1 billion order book and to protect jobs, adding that new investment was needed to build its pipeline of 4,200 new homes.

Ilke Homes collapse: 80 staff at Flaxby housebuilder start legal action

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:

 “Further to the collapse of Ilke Homes, we have been instructed by more than 80 former employees who have lost their jobs and who are now looking to pursue a Protective Award against the company.

“While there are reports to suggest that the business will be bought out of administration, this does not prevent people who have already been made redundant from pursuing a claim even if they are offered their jobs back in due course.

“Of course, for many of our clients that would be the ideal outcome, but the Protective Award is claimed because the redundancy process was not followed correctly, which of course has a short term impact on a person’s financial wellbeing.”

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

Flaxby-based Ilke Homes has entered administration after being unable to find a buyer.

Earlier today, Clare Kennedy, Catherine Williamson and Deborah King of AlixPartners were appointed as Joint administrators to Ilke Homes Holdings Limited, Ilke Homes Land Limited and Ilke Homes Limited collectively.

The appointment was made at the request of the company’s directors.

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.

They added that a “significant majority” of the company’s 1,150 staff will be made redundant. A small amount will remain to assist in the winding up of the firm’s affairs.

Clare Kennedy, joint administrator and a partner & managing director 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 now is on helping all stakeholders, employees, suppliers and customers alike, to find the best possible outcome in this undoubtedly difficult situation for all.”

Read more:

Administrators added that the firm had “faced the challenges of unprecedented inflation and a lack of land supply linked to planning processes”.

Ilke Homes, which is based alongside junction 47 of the A1(M), filed a notice of intention to appoint administrators last week.

Officials at the firm said previously that it needed additional funding to fulfil a £1 billion order book and to protect jobs, adding that new investment was needed to build its pipeline of 4,200 new homes.

Ilke Homes was established in 2017 and opened its Flaxby factory the following year. Since then, it built up a client base that included major institutional investors, housing associations, developers and local councils.

Flaxby firm Ilke Homes files administration notice

Ilke Homes, the manufacturer of modular housing based at Flaxby, near Knaresborough, has filed a notice of intention to appoint an administrator as a deadline to save hundreds of jobs approaches. 

The company has been looking for a buyer since running into financial difficulties it attributed to “volatile macro-economic conditions and issues with the planning system”, which had “complicate[d] fundraising and housing delivery”. 

The Stray Ferret understands the company has been offered to potential buyers for bids over £1, and some major house-builders have been approached.

Any bids for the business will need to be submitted before the end of this week, when the firm’s existing backers will decide the firm’s future. 

If no deal is forthcoming, the company could enter administration in 10 days.

Ilke Homes said it needed additional funding to fulfil a £1 billion order book and to protect jobs, adding that new investment was needed to build its pipeline of 4,200 new homes.

The company specialises in modular housing that is built in its factory and then put together on site in a process that saves time and costs, reduces carbon emissions, and is not weather-dependent.

Earlier this month, the company told most of the nearly 1,000 employees at its 250,000 sq ft factory not to come into work until further notice, although they have reportedly remained on full pay. 

Ilke Homes was established in 2017 and opened its Flaxby factory the following year. Since then, it has built up a client base that includes major institutional investors, housing associations, developers and local councils. 

In 2021, the company raised £60 million in investment, half via a loan from government agency Homes England and half from investors. 

A year later, it raised a record-breaking £100 million from new and existing shareholders, following successive years of triple-digit growth. 

Read more:

 

Revived Farmison fully reopens Ripon shop

Online premium meat retailer Farmison & Co held an event in Ripon on Saturday to mark its shop fully re-opening.

Cut by Farmison & Co is now serving customers from 9am to 2pm every Saturday at Bondgate Green, as well as from 9am to 5pm on Wednesday to Friday. It also provides a click and collect service Monday to Saturday.

In-house butcher Jeff Baker held a barbecue and special offers were available to celebrate the firm’s rapid revival.

Farmison ceased trading in April when the firm collapsed into administration.

A consortium led by ex-Asda chief executive Andy Clarke and Chilli Marketing owner Gareth Whittle acquired the business and began a phased reopening last month.

Mr Whittle and chief operating officer Michelle Kennedy were at the Ripon site on Saturday to celebrate the comeback.

Gareth Whittle and Michelle Kennedy Farmison

Gareth Whittle and Michelle Kennedy outside Cut on Saturday

Mr Whittle said the first aim was to stabilise then focus on increasing revenue from e-commerce as well as wholesale and retail channels. He added:

“Michelle and the team have moved mountains to get us back open.

“We are working with pretty much all the key suppliers, who have been incredibly supportive.”

Mr Whittle said the company’s mission to provide better meat sourced sustainably in the UK persuaded him to get involved, adding:

“I honestly believe in what we are doing and am excited about our plans.”

Staff recruitment

Ms Kennedy, who has been with Farmison since it was founded in 2011, said the company had started trading online within eight days of being rescued and had been building up the business since.

It now has 42 staff, many of whom worked for the firm pre-administration, and expected to be up to 59 this year.

Farmison

Ms Kennedy said Mr Clarke and Mr Whittle brought fresh strategic thinking and strong business connections to Farmison. She added:

“It’s amazing to have them resurrecting the business. Gareth is a marketeer and has huge expertise in that area and Andy is a retailer with a wealth of business he can provide to the business.”

Read more:

 

Talks to buy Masham’s Black Sheep Brewery reported to be underway

A London investment firm is in talks to buy Masham’s troubled Black Sheep Brewery, according to media reports today.

The brewery, which employs about 50 staff, said last week it intended to appoint administrators after being hit hard by covid and rising costs.

Sky News reported Breal Capital has emerged as the leading contender to acquire the company, which was founded in 1992 by Paul Theakston.

Sky News said “other bidders remained in contention to acquire the business, and that a deal with Breal was not yet certain”.

It added the brewery asked interested parties to table offers by last Friday, and cited a pre-pack administration as one possible outcome.

Breal Capital is part of Breal Group, which did not respond to the Stray Ferret’s request for comment today.

Charlene Lyons, Black Sheep Brewery’s chief executive, said last week:

“The business has been hit very hard by the pandemic and the sudden rise in all costs.

“It has been the perfect storm, but the team are confident that with a new structure Black Sheep will thrive and grow as the team set course in a new direction.”

Read more:

 

Masham businesses fear impact if troubled Black Sheep Brewery closes

As Masham celebrated the King’s Coronation, people in the small market town have spoken of hopes a buyer can be found for the Black Sheep Brewery.

Last week, Black Sheep announced administrators had been appointed after being “hit very hard” by the pandemic and a rise in costs.

The company, which employs around 50 members of staff, was founded in 1992 and has become a tourist hotspot bringing a significant amount of footfall to the town.

One local business owner told the Stray Ferret people are worried about a potential loss of income for their own businesses if the brewery doesn’t survive.

Tim Ledbetter, owner of Bentley’s of Masham, said:

“With it being such a big employer, there is then a big knock-on effect.

“We get a lot of trade from visitors of Black Sheep — it could be detrimental.”

The brewery reported turnover of £14.3 million as of March 31, 2022, according to its most recent accounts. However, it also stated a pre-tax loss of £1.18 million, compared to £862,871 profit in the previous year.

Read more:

Reports of  interest from several potential buyers has given some cause for cautious optimism.

Emily Swift, an employee of Through the Looking Glass, said:

“People were definitely concerned, but talks of a possible buyer has eased worries.”

A confirmed acquisition or sale has not yet been confirmed, and Teneo remains in place as the brewery’s financial adviser.