Flaxby firm Ilke Homes enters liquidation with debts of £320 million

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.

Photo of the main entrance to the Ilke Homes factory site at Flaxby, showing chain-link fencing and barbed wire.

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.

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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.

Thieves steal ‘large amount’ of equipment from Ilke Homes’ factory

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.”

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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

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.

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.