Published 14th Dec 2023, 11:45 BST

Updated 14th Dec 2023, 11:45 BST

The Hull-based business, which employs about 1,100 people, said a consultation with workers is under way that could ‘potentially result in a reduction of around 200 jobs’.

In April, the firm reported record turnover and profits for 2022 – the best results in the company’s 77-year history.

For the year to October 1 2022, Willerby recorded turnover of £217m, up 67 per cent from £129.9m the year before. Operating profits rose to £15.1m, a fourfold increase on £3m the previous year.

Holiday homes manufacturer Willerby has confirmed about 200 jobs are at risk as it plans to cut production due to a slump in sales. Picture: Shaun Flannery

However, the company has now said: “Unfortunately, a significant decline in holiday park and residential park home sales have left us with no choice but to adapt to these very challenging market conditions.

“We understand fully the impact this will have on affected employees and their families and our priority is to ensure our people are treated with the utmost respect and fairness throughout the consultation process.

“We would like to express our heartfelt appreciation to all our employees for their continued hard work, loyalty and dedication and the contribution they make to maintaining Willerby’s position as the market leader in our industry.”

Only two out of five production lines at the firm are operational this week and the company confirmed it will operate the same reduced hours next week before its annual Christmas shutdown.

In January there will be a period of short time working for all production.

Anyone who is to be made redundant will be given notice on January 26.

Willerby is the UK’s largest manufacturer of static caravans and lodges – building a third of new units destined for holiday parks – as well as operating a growing residential park homes brand, Willerby Bespoke.

The business is majority owned by independent investment house Equistone Partners Europe, with a minority stake held by the management team.

In the summer, Willerby staged a high-profile London showcase, inviting people living and working in the capital to embrace holiday home ownership.

Willerby teamed up with park operator Park Holidays UK to hold the three-day event at Southbank Centre Square, on the south side of the Thames.

Peter Munk, chief executive of Hull-based Willerby, said at the time: “Staycations and holiday home ownership have been incredibly popular for many years, but there’s still relatively low ownership in London.”

In September, Willerby launched its new all-electric specification enabling its models to be powered soley by electricity on the majority of UK holiday parks.

The firm said its All-E specification was a UK first and a green game-changer for the holiday homes industry as it moves from liquid petroleum gas to electric energy.

It added that the model was identical to a traditionally-powered holiday home, while being better for the environment.

Holiday home manufacturer Willerby set to axe 200 jobs in Hull