Published 5th Jul 2023, 04:00 BST

A significant majority of the Flaxby-based modular homes company’s 1,150 staff are facing redundancy, the administrators said, with only a few remaining to oversee the administration process.

Further to the announcement, specialist employment law experts at Aticus Law says it has already been instructed by more than a 80 affected individuals – including more than 60 workers from Flaxby - and is now in the early stages of investigating concerns around how the redundancy process was managed.

The staff involved say they were sent home around two weeks ago with pay but were made aware the company was in trouble and was looking for a new investor. Last week, they were called to a meeting during which they were advised that they were being let go.

ilke Homes went into administration earlier this year

As part of the legal process, Aticus Law will determine whether ex-employees are eligible to claim for a Protective Award claim against the company.

The firm's client base includes major institutional investors, housing associations, volume house builders and local authorities.

Writing on Linkedin, Nigel Banks, R&D director at Ilke Homes, called the situation "a very sad day."

"We completed over 40 sites in five years and have created great homes and communities for hundreds of families,” he wrote.

"Sadly our plane has run out of fuel.

"It is landing with a crash that will impact many people inside and outside the business.

"I am truly sorry that this has happened."

Clare Kennedy, joint administrator and a partner and managing director at AlixPartners said: “This is an incredibly difficult time for all concerned, 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, 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.”

Ilke has blamed tough economic conditions and challenges with the planning system for its financial situation.

At the start of June, the private equity-owned firm, which secured £30m from government agency Homes England in September 2021, was forced to pause its operations.

It put itself up for sale, saying its 4,200-home pipeline “will not be delivered” without a new investor.

Ilke Homes: More than 80 employees taking legal action against Yorkshire housing company after going into administration