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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.

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.”

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.

Local firm that employs 1,000 staff set to close

Ilke Homes has told staff not to return to work and is expected to announce its closure imminently.

Numerous members of staff at the Flaxby-based firm, which employs about 1,000 staff, have told the Stray Ferret they were informed of the decision today.

Chief executive Giles Carter is expected to hold a video conference tomorrow.

Senior management have been told to hand in laptops and IT equipment ahead of the meeting.

The Stray Ferret has approached Ilke Homes for comment.

The modular house-building manufacturer told staff 20 days ago not to come into work as it sought a buyer and further investment.

Staff were paid in full on Wednesday and were informed by an email from Mr Carter that the firm continued to “pursue all angles to secure a long-term future for the business”. But no deal has transpired.

Ilke Homes' factory at Flaxby near Knaresborough

The headquarters at Flaxby

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

The company said the move was due to financial difficulties caused by “volatile macro-economic conditions and issues with the planning system”.

Last week, the Stray Ferret reported the company had been offered to potential buyers for bids over £1, and some major housebuilders had been approached.

On Tuesday, a spokesperson for Ilke Homes told the Stray Ferret that “talks with potential investors remain ongoing”.

Staff at troubled Ilke Homes told they will be paid this month

Staff at Ilke Homes have been told they will be paid in full this month as the company continues to find a buyer.

The modular housing manufacturer based at Flaxby, alongside the A1(M), filed a notice of intention to appoint administrators last week.

The company said the move was due to financial difficulties caused by “volatile macro-economic conditions and issues with the planning system”.

Staff were told to stay at home on June 9 while the company tried to resolve the situation.

The lack of apparent progress in the 18 days since has heightened concerns but in an email, seen by the Stray Ferret, staff have now been told they will be “paid as normal” this week and that payslips will be available on Wednesday.

The email, sent by chief executive Giles Carter, added the company continued to “pursue all angles to secure a long-term future for the business”.

Last week, the Stray Ferret reported that the company had been offered to potential buyers for bids over £1, and some major housebuilders have been approached.

At the time, any bids for the business were to be submitted before the end of the week, when the firm’s existing backers would decide the firm’s future.

The Stray Ferret asked Ilke Homes today whether any bids for the company had been lodged since it filed a notice of intention to appoint administrators.

A spokesperson said:

“Talks with potential investors remain ongoing.”

lke Homes said previously 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 built in its Flaxby 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.

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.

Negotiations continue to find buyer for Knaresborough housebuilder

Most of Ilke Homes‘ Knaresborough staff are expected to remain at home on full pay next week as the company continues to seek a buyer.

The Stray Ferret understands a small number of staff will be in the Flaxby factory to help complete some orders and send them to site.

They will be joined by managers, who have remained at the factory this week after the workers were told a week ago to stay at home while the company sought investment.

The business was put up for sale this week and a source told the Stray Ferret its owners were now in “advanced talks” with a potential buyer.

In a statement issued earlier this week, the company blamed market conditions for its current situation:

“In 2020, Ilke Homes launched its turnkey development offering, where the company acquires land, secures planning permission and develops the site. This has been complicated by uncertainty over planning policy and rising build costs.

“While having delivered strong contribution margins, Ilke Homes now requires new investment to meet overheads, achieve further scale and become cash flow positive.

“The wider UK housing market has been hit by rapidly rising interest rates, which has reduced demand and resulted in housing starts falling below pre-pandemic levels.

“Official government figures have also revealed that planning applications in England have fallen to their lowest level in at least 16 years, thanks to uncertainty over planning policy and heightened build costs, highlighting the scale of the challenge in improving housing delivery.”

Knaresborough housebuilder up for sale as operations paused

Bosses at Knaresborough-based Ilke Homes are “exploring a sale” of the company as hundreds of staff are sent home.

The company said in a statement today it required additional funding to fulfil a £1 billion order book and to protect jobs.

The firm added new investment was needed to build 4,200 homes.

It added it was looking to sell the firm at a time when “volatile macro-economic conditions and issues with the planning system complicate fundraising and housing delivery”.

The Stray Ferret reported on Friday that several hundred staff at its Flaxby factory close to the A1(M) were told not to come into work until further notice.

They have reportedly been told they will be paid, and will be called back in when the company finds an investor. Managers will continue to work in the 250,000 sq ft factory this week.

The company said in its statement that it operations had been paused “while a strategic review is ongoing”.

It added:

“In 2020, Ilke Homes launched its turnkey development offering, where the company acquires land, secures planning permission and develops the site. This has been complicated by uncertainty over planning policy and rising build costs.

“While having delivered strong contribution margins, Ilke Homes now requires new investment to meet overheads, achieve further scale and become cash flow positive.

“The wider UK housing market has been hit by rapidly rising interest rates, which has reduced demand and resulted in housing starts falling below pre-pandemic levels.

“Official government figures have also revealed that planning applications in England have fallen to their lowest level in at least 16 years, thanks to uncertainty over planning policy and heightened build costs, highlighting the scale of the challenge in improving housing delivery.”

Ilke Homes specialises in building modular homes.

The company builds the homes at its factory on Flaxby Moor Industrial Estate near Knaresborough. The homes are then delivered across the UK.

Staff sent home as Knaresborough housebuilder seeks urgent investment

A housebuilder based near Knaresborough has reportedly sent its staff home this afternoon after reports it was urgently seeking investment.

Ilke Homes is said to have told several hundred staff not to come into work at its Flaxby factory until further notice.

They have reportedly been told they will be paid, and will be called back in when the company finds an investor. Managers will continue to work in the 250,000 sq ft factory next week.

The company, which manufactures modular homes, was reported by industry publication Building to have been seeking a new investor this week.

Last week, Companies House began action to strike Ilke Homes off the register of companies because it was late filing. It discontinued the action two days later.

The company said it had been given an extension until the end of this month to file its accounts, during which time it was aiming to secure new funding.

Chief financial officer Patrick Bergin told Building:

“We can file, the accounts are ready, [but] the final conversation with the auditor is around whether they include a caution in the audit report that references the severe but plausible downside scenario.

“I’m shooting for the cleanest outcome.”

The Stray Ferret has attempted to contact Ilke Homes but not had a response.

Flaxby roadworks set to continue until June

Motorists are set to face five more weeks worth of delays on the A59 at Flaxby as ongoing roadworks are set to continue until June.

Work is being carried out by Power On, which is installing a high voltage circuit to provide power supply to a new business park in the area.

The cable is being installed along the verge of the A59 heading east towards A59/A1M junction.

Temporary traffic lights are in place at the site, which are in manual operations between 7.30am and 5pm, as well as one lane closure.

A spokesperson for Power On said:

“We do apologise for any inconvenience this may cause the public.

“We will complete the works as soon as possible whilst keeping the traffic flowing as much as possible, maintaining the safety of our operatives and the public as our number one priority.”

The spokesperson added that the work is due to run up to June 1, but are expected to be completed a week ahead of schedule due to “good progress made thus far”.

It comes as a section of the project saw roadworks in Shortsill Lane in Coneythorpe.

The work forced the Tiger Inn pub in the village to close for five weeks at the start of the year.

At the time, Barbara Gill, who owns the Tiger Inn, said the pub was already dealing with the cost of living crisis – which has seen its energy bills increase to more than £4,000.

She said:

“These road works are the final kick we didn’t need.”

Power On said the work in Coneythorpe was completed ahead of schedule in March.

Car destroyed by fire on A1(M) in Harrogate district

Traffic was halted on the southbound A1(M) between junctions 46 and 47 last night when a Vauxhall Corsa caught fire.

The vehicle was completely destroyed by the blaze, which occurred at about 8.45pm between Flaxby and Wetherby Services.

The wreckage of the Corsa. Pic: Knaresborough Fire Station

North Yorkshire Fire and Rescue Service’s incident log said:

“Knaresborough and Harrogate crews attended a Vauxhall Corsa well alight on the hard shoulder.

“The fire is believed to have been caused by a mechanical fault. Crews extinguished the fire using two hose reels. The car was destroyed by fire.”

Firefighters at the scene. Pic Knaresborough Fire Station

Last night National Highways alerted motorists to the incident and warned them to expect delays. Knaresborough Fire Station posted on social media this morning the road re-opened shortly afterwards.

Traffic is being held temporarily on the #A1M southbound between J47 and J46 near #Wetherby due to a vehicle fire. pic.twitter.com/Gpa4PvdDpZ

— National Highways: Yorkshire (@HighwaysYORKS) December 30, 2022

Long-term roadworks to affect villages near Knaresborough

Roadworks are to cause major disruption to two villages near Knaresborough for several weeks at the start of next year.

Utilities company Power On is to install power cables for a 600,000 square feet business park near Flaxby called Harrogate 47 close to junction 47 of the A1(M). The park could support 2,000 jobs.

The project is expected to last six months and involve five weeks of road closures, starting on January 9, in Flaxby and Coneythorpe.

Power On said in a statement it had conducted “extensive consultation” to minimise disruption.

Work will start on York Road in Flaxby and continue onto Shortsill Lane and Moor Lane. It will take place from January 9 to 28 before recommencing on February 22 until March 14.

Diversions will be in place to minimise disruption.

Power On said in a statement it was “committed to delivering essential works whilst ensuring minimal disruption to local residence and the community”. It added:

“We have been able to avoid further closures by allowing traffic to flow subject to reduced weight limits. Alternative transport for schools will be provided by North Yorkshire County Council.

“We have been working with the local parish council who have assisted in coordinating the works. Road closure signs will include alternate routes to any local businesses affected with advanced warning signs posted in late December.

“The works are to be completed during the winter months, to minimise impact. At the request of the Tiger Inn and the parish council, it was agreed that work will be suspended during potentially busier periods such as Valentine’s, Mother’s Day, and Easter weekend.”

The company added residents affected by the road closures “will be able to access via the diversion routes which have been previously agreed and signposted”.

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