MORE than a thousand workers have been made redundant after a North Yorkshire housebuilder has gone into administration.

As The Press reported earlier today, Ilke Homes, which is based at Flaxby, near Knaresborough, was due to go into administration and The Press has just been told that administrators Clare Kennedy, Catherine Williamson and Deborah King of AlixPartners have been brought in and are winding up the companies’ affairs.

The appointments were made at the request of the companies’ directors and comes following an extensive exercise by the Yorkshire based modular homes builder to seek either a fresh injection of capital or a going concern purchaser.

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With significant incremental investment the business returned to growth following the Covid pandemic, but then faced the challenges of unprecedented inflation and a lack of land supply linked to planning processes. As a result, despite a strong product and pipeline, the business has not been able to secure the further investment needed to take it forward.

This means the immediate closure of the manufacturing facility at Flaxby in North Yorkshire and all site activities will cease.

The significant majority of the companies’ 1,150 staff will be made redundant with a small number being retained to assist the administrators in winding up the companies’ affairs.

Clare Kennedy, joint administrator and a partner and 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.”