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.”

Read more:

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. 

Read more: