Collapsed local modular housebuilding firm Ilke Homes‘ name has been brought back to life.

The company, based alongside the A1(M) at Flaxby near Knaresborough, ceased trading and entered administration last June with the loss of more than 1,000 job losses and debts of £320 million.

Government housing agency Homes England, which was owed an estimated £68.7 million, was among the substantial list of creditors. Employee claims were reported to be more than £720,000, while HMRC was owed £2.1 million and unsecured creditors’ debt at the company totalled £249.3 million.

However, Irish company Homespace Residential Limited is now using the Ilke Homes name.

The Stray Ferret understands Homespace bought some of Ilke Homes’ assets in October last year, including some inventory items and the intellectual property, which gives it the right to use the firm’s name and logo.

The home page of the Ilke Homes website how contains information about Homespace.

It says:

“Homespace was born through the completion of a strategic asset purchase agreement, taking ownership of Ilke’s trademarks, design IP, modular stock and technology patents.”

It goes on to say Ilke Homes “delivered over 1,000 high-quality energy-efficient homes” during its six-year lifespan and that Homespace has “proven built designs available for nine core house types”.

AlixPartners UK, which was appointed liquidator last year, said Ilke Homes faced “challenges of unprecedented inflation and a lack of land supply linked to planning processes”.

The firm told the Stray Ferret today it was still acting as liquidators for Ilke Homes, but declined to comment further.

The Stray Ferret reported in August that more than 600 former employees of the company were to take legal action over the handling of the redundancy process.

We contacted Homespace to find out more about the acquisition but did not receive a response by the time of publication.

Read more:

• Flaxby firm Ilke Homes enters liquidation with debts of £320 million
• Employees to get little Ilke Homes settlement, document reveals

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.

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Police are continuing an investigation into a break-in at Ilke Homes’ factory at Flaxby.

The modular housebuilder, which employed 1,150 staff, entered liquidation this month. Nearly all staff lost their jobs.

Thieves stole “a large amount of equipment” from the factory off the junction 47 of A1(M) on August 19 – just two days after it had been auctioned by administrators to realise the value of assets on behalf of creditors.

In a report, AlixPartners, which handled the administration, said it had filed an insurance claim over the incident.

It added that the suspects had cut through “several secured gates to enter with various vehicles” and refused to leave despite police attendance and “continued to breach the buildings on site”.

Administrators said they were forced to increase security at the site after the trespassers had left on August 20 after being served an eviction notice.

Read more:

• 600 Ilke Homes staff join legal action over job losses
• Ilke Homes: More than 1,000 staff made redundant
• Flaxby firm Ilke Homes enters liquidation with debts of £320 million

This included an agreement with North Yorkshire Police for two officers to remain at the factory for additional support.

AlixPartners said a claim with the company’s insurance provider “remains ongoing” and an update will be given during the liquidation process.

The Stray Ferret asked North Yorkshire Police whether any arrests had been made in connection with the break-in.

A statement from police said:

“The investigation is ongoing and the appeal for witnesses still stands.”

It comes as Ilke Homes, which was founded in 2018, was placed in liquidation this month owing £320 million in debts.

According to its report, AlixPartners estimated that HMRC, employees and unsecured credits are likely to receive no money.

Collapsed housebuilder Ilke Homes has been put into liquidation.

The company, which was based alongside the A1(M) at Flaxby, ceased trading and entered administration in June, causing the loss of 1,100 jobs and leaving a long list of creditors.

A final report from administrators AlixPartners shows the firm left debts of £320 million.

Among the sums owed by Ilke Homes was to government housing agency Homes England, which had an estimated debt of £68.7 million.

A court order has since been filed to Companies House on October 19 which states the firm will be placed into liquidation.

According to its report, AlixPartners estimated that HMRC, employees and unsecured credits are estimated to receive no money.

Main entrance to Ilke Homes’ Flaxby factory.

Meanwhile, Homes England is likely to receive £82,000 — some 0.1% of the overall debt it is owed.

Employee claims were estimated to be £724,614, while HMRC was owed £2.1 million and unsecured creditors debt at the company totalled £249.3 million.

Catherine Williamson, administrator at AlixPartners, said in her report that during the administration period it was determined there was “significantly less value to be realised than originally anticipated” from the company’s assets.

She said:

“Based on current information, the administrators do not anticipate that any funds will become available to enable any distributions to be made to the preferential or unsecured creditors; however, the likely levels of return are estimated and are subject to change.”

AlixPartners has been appointed as liquidators of the company.

Read more:

• 600 Ilke Homes staff join legal action over job losses
• Ilke Homes: More than 1,000 staff made redundant

Shortly after Ilke Homes collapsed, administrators said 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.

Meanwhile, the Stray Ferret reported in August that more than 600 former employees of the company were to take legal action following the administration announcement.

Manchester-based law firm Aticus said it had been instructed by staff members to investigate concerns around how the redundancy process was managed.

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.

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:

• 600 Ilke Homes staff join legal action over job losses
• Thieves steal ‘large amount’ of equipment from Ilke Homes’ factory
• Council pledges ‘comprehensive support’ to former Ilke Homes staff

Over 600 former workers at collapsed Flaxby housebuilder Ilke Homes are taking joint legal action over job losses.

More than 1,000 people were made redundant when the firm, which was situated close to junction 47 of the A1, entered administration in July.

Manchester law firm Aticus Law said yesterday it was now acting on behalf of more than 600 ex-employees over the way the redundancy process was managed.

The claim will focus on whether the correct consultation process was followed, and whether ex-employees are eligible to claim for a protective award claim against the company.

Those involved could receive up to eight weeks’ worth of pay in compensation, with a cap of £643 per week.

Edward Judge, a partner at Aticus Law, said:

“The protective award is a vital safety net for so many families in fast-paced redundancy situations that often leave them with no source of income and absolutely no notice.

“However, many people don’t realise that you can only get a protective award payment if you are included as part of the claim and are listed as part of the schedule of claimants attached to the tribunal judgment.”

Former staff members have until September 4 to add their names to the schedule of claimants.

Mr Judge said:

“After this unfortunately we won’t be able to accept new applicants, as we will be doing all of the necessary work needed to submit the claim to ACAS.”

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Thieves have stolen a “large amount of equipment” from Ilke Homes factory in Flaxby.

The modular housebuilder, which employed 1,150 staff, went into administration in June. Nearly all staff immediately lost their jobs.

The equipment was stolen two days after it had been auctioned by administrators to realise the value of assets on behalf of creditors.

A North Yorkshire Police spokesperson said:

“North Yorkshire Police is investigating a report of a break-in at a large industrial premises near the village of Flaxby in North Yorkshire.

“It was reported that on August 19 a large amount of equipment worth thousands of pounds had been stolen from the premises.

“The investigation is ongoing at this time. No arrests have been made.”

Ilke Homes’ factory is close to junction 47 of the A1, about two miles from Knaresborough.

Ilke Homes’ site near the A1(M).

Administrators AlixPartners commissioned Hilco Valuation Services to auction items including electric hand tools, travelling cranes and tipping skips.

The Stray Ferret asked AlixPartners for details of the value of stolen items and whether the site maintained on-site security.

It declined to comment beyond a statement that said:

“We can confirm that there was a break-in and subsequent theft at a property relating to the Ilke Homes administration.

“The administrators are now working with insurers and all related parties to minimise any losses incurred.”

Read more:

• Equipment from Ilke Homes’ Flaxby factory to be sold
• Ilke Homes: More than 1,000 staff made redundant

Ilke Homes, which was founded in 2018, reported a pre-tax loss of £34m in its latest accounts.

It claimed to produce operationally zero-carbon modular homes from its Flaxby site.

Police urged anyone with information about the break-in to dial 101 and quote incident number 12230156480