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.”

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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.

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.”

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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: More than 1,000 staff made redundant

More than 1,000 staff have been made redundant at Flaxby-based Ilke Homes, administrators have confirmed.

AlixPartners were appointed to oversee the administration process of the company on June 30.

Ilke Homes, which is based off junction 47 of the A1(M), made the appointment after it failed to find a buyer or new investment.

In a statement at the time, administrators said a “significant majority” of the company’s 1,150 staff would be made redundant.

A spokesperson for AlixPartners has now confirmed to the Stray Ferret that 1,039 staff in the company’s homes section and 19 in its land section have been made redundant.

They said:

“The administrators have appointed a specialist agent to support former employees in understanding their statutory entitlements and making claims to the Redundancy Payments Service.

“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.”

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The move comes as the factory at Flaxby was immediately closed following the company entering administration and all site activities have been 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.

Meanwhile, the Stray Ferret reported last week that more than 80 former employees of the company were to take legal action following the administration announcement.

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.

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.

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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.”

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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”.

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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”.

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.

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.”

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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.

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. 

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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.”

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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.

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