Yorkshire-based modular housebuilder Ilke Homes has stopped production at its Knaresborough factory and is looking for a buyer.
The company said that it was "exploring a sale of the business as volatile macroeconomic conditions and issues with the planning system complicate fundraising and housing delivery".
It added: "The company and its advisers have been exploring fundraising options and the existing backers are hopeful of securing a future for the business via a sale or investment."
Established five years ago, Ilke Homes is owned by TDR Capital, Sun Capital and Fortress Investment Group. The company reported a pre-tax loss of £34m from a turnover of £12.7m in its latest accounts, for the year to 31 March 2021. However, it does boast a £1bn order book and a 4,200-home pipeline.
Ilke is more than two months late filing its latest accounts, due to auditors wanting more funding on its balance sheet. The company employs around 1,000 people.
Its struggles follow the closure of L&G Modular Homes earlier this year. The company had posted six straight years of losses since its launch, with its latest loss standing at £36.9m for the year to 31 December 2021. In September 2021, L&G said that its modular arm would need several years of upfront investment before becoming profitable.
Urban Splash's modular spin-off also entered administration in May 2022, citing operating issues at its factory in Alfreton, and Caledonian Modular collapsed last March, before being purchased by JRL a few weeks later.
In April this year modular house builder TopHat secured a £70m investment from new and existing shareholders, including £25m from Persimmon, to continue operations.
Meanwhile, US modular giant Volumetric Building Companies (VBC) has also announced plans to open a factory in the UK as part of its expansion into the European market.
VBC said it would target the UK build-to-rent, affordable housing, student accommodation and hotel sectors, as it seeks to become a $1bn player in the modular construction field.
Original source: Ilke Homes closes factory and hunts for buyer | Construction News
