1,150 people have been made redundant as MMC housebuilder Ilke Homes failed to resolve financial issues and has gone into administration
After pausing operations amidst efforts to find a new buyer in early June, Ilke Homes has fallen into adminstration.
Established in 2018, the firm generated less than £24m in turnover over their first three years of operations and lost £88.7m before tax. Latest accounts for the year to March 2021 showed a lost of tax over two and half times the turnover for the same period.
Before going into administration, Ilke Homes said that it had a £1bn order book and a 4,200-home pipeline.
Chief financial officer at Ilke Patrick Bergin had previously commented that Ilke was struggling to secure funding after a £100m fundrasing round in 2022 proved insufficient.
Staff had been told to not come into work in June
Ilke reportedly told staff not to come into work until further notice in early June, although they were reportedly remained on full pay.
Of the estimated 1,150 staff, the majority have been made redundant with a scant few remaining to assist administrators.
Clare Kennedy, Catherine Williamson and Deborah King of consultant AlixPartners were appointed joint administrators to ilke Homes Holdings Limited, ilke Homes Land Limited and ilke Homes Limited, which collectively trade as ilke Homes, on Friday morning(30 June 2023).
Clare Kennedy commented, “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 time.”
Outstanding developments from Ilke Homes include projects in Southend, Milton Keynes and Kent.
