The crisis at Ilke Homes raises further questions about the viability of mass-market offsite house-building.
Last month Legal & General pulled out of the prefabricated house-building sector, having spent millions on its factory in Sherburn in Elmet. In April TopHat managed to secure 拢70m investment, including 拢25m from Persimmon, to keep going.
Ilke Homes said that it was now 鈥渆xploring a sale of the business as volatile macro-economic conditions and issues with the planning system complicate fundraising and housing delivery鈥�.
It added: 鈥淭he company and its advisers have been exploring fundraising options and the existing backers are hopeful of securing a future for the business via a sale or investment.鈥�
Pending the review, operations have been "paused" at its 250,000 sq ft factory in Knaresborough, North Yorkshire.
Ilke Homes, owned by TDR Capital, Sun Capital and Fortress Investment Group, was established five years ago. It鈥檚 latest accounts show a loss of 拢34m before tax in the year to 31st March 2021 on turnover of 拢12.7m. Over its first three years of operations Ilke Homes generated less than 拢24m in turnover and lost, in aggregate, 拢88.7m before tax.
However, it claims a 拢1bn order book and a 4,200-home pipeline.
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