TopHat, the volumetric offsite housebuilder, has announced they will wind down their factory operations
Another modular housebuilder is reeling back operations, as a decline in orders has led to TopHat winding down their factory operations.
The group says that the wind down will allow them to assess all their options.
The news comes as the latest blow to the modular sector with both Ilke Homes and Legal and General Modular Homes both falling last year, and House by Urban Splash went into administration the year before.
TopHat has faced many difficulties in recent years
Since it’s inception, the firm has accumulated losses of £87m.
In 2019, Goldman Sachs made an initial investment of £75m, and has provided financial support since.
Last year, the firm took out a £15m loan from Homes England.
In March 2024, the firm announced that they had decided to make 70 staff redundant, and that they would have to pause the opening of its new factory in Northamptonshire, which would have been 650,000 sq ft.
The firm lost its managing director, Andrew Shepherd, who left in May.
TopHat was hit with a winding up petition in August by the developer Harworth, which was subsequently dismissed, however, shortly afterwards Persimmon then wrote off their investment in the firm, for £25m.
All factory orders will be completed
According to filed accounts in 2022, the firm currently has 212 factory workers whose jobs are now at risk. The factory is located in Derby, and is 125,000 sq ft.
In a statement, the firm said: “Unfortunately, due to the continued reduction in future pipeline, TopHat is in the process of making most of the factory staff redundant by following a statutory consultation process.
“This orderly wind-down of volumetric operations will put the business in a position to assess all future options.
“It is our strong belief that there is a continued need for Category 1 and Category 2 modular in the UK and we hope that we can capitalise on this in the future.”
