Most of the 1,150 staff were made redundant on Friday afternoon with a small number being retained to assist the administrators wind up the company’s affairs.
Clare Kennedy, Joint Administrator and a Partner & Managing Director at AlixPartners said: “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.”
Ilke’s management and backers had spent the last few weeks trying to find a buyer or investor to protect its workforce and deliver on the business’ claimed 4,200-home pipeline.
They approached a trio of major volume house builders but could not tempt them to make an offer even after inviting nominal bids of over £1.
The firm’s deepening problems came to a head earlier this month when ilke told staff not to come into work until further notice, although they were reportedly remained on full pay.
ilke said its Flaxby Moor factory had a capacity of 2,000 homes a year
The firm’s North Yorkshire factory and sites were all put on hold pending the outcome of survival talks.
Established five years ago, ilke Homes’ client base includes major institutional investors, housing associations, volume house builders and local authorities.
Just six months ago, ilke announced it had raised a record-breaking £100m from new and existing shareholders, although it is not certain whether all this funding was released.
US-based investor Fortress led the equity investment fundraise, with existing shareholders TDR Capital and Sun Capital also subscribed.
This came after a £60m injection in November 2021. The latter fundraise was split between a £30m loan from government agency Homes England and £30m of equity from investors.
