House by Urban Splash calls in administrators
The modular housing company has collapsed following “operational issues” relating to its factory in Alfreton, resulting in 160 redundancies.
Teneo has been appointed as administrator over the House by Urban Splash, which de-merged from Tom Bloxham’s wider Urban Splash group in 2019.
House by Urban Splash is a joint venture between Urban Splash shareholders, Japanese modular firm Sekisui and Homes England.
Adrian Berry, joint administrator, said: “This appointment follows various operational issues relating to the factory in Alfreton. We will now look to stabilise the US House Group by providing a platform to complete certain developments and explore sale options for the factory and the other development sites. We would like to thank all employees and other key stakeholders for their continued support.”
The last available financial results for House by Urban Splash show a £12.6m pre-tax loss for the year ended 30 September 2020.
A statement from Urban Splash said: “The directors of House – Urban Splash House Holdings Group – have appointed administrators from Teneo to the company.
“The appointment of Teneo senior managing directors Adrian Berry and Daniel Smith to the company has no impact on the wider Urban Splash group or its operations, which continue to run successfully. The administrators will oversee completion and sale strategies for the company’s developments.”
House by Urban Splash specialises in the creation of modular homes. Its schemes include East Float at Wirral Waters, Port Loop in Birmingham, New Islington in Manchester and Grappenhall Woods in Warrington.
The company was established when Urban Splash acquired the modular arm of SIG for £1 in 2018. This deal included SIG’s factory in Alfreton.
The following year, Japanese modular firm Sekisui came on board, taking an initial 35% stake in the business.
At the time of its collapse, Urban Splash shareholders and Sekisui House UK each held 48% equity. Homes England held the remaining 4%.
Homes England was contacted for comment.
Other connected companies, collectively known as the US House Group, have also been placed into administration.
These are: Urban Splash House Investments, Urban Splash House, Urban Splash Modular, Port Loop Holdings, Port Loop and Port Loop (Subco1).
At the time of Teneo’s appointment, the House group had 187 employees, with 151 working at the factory. Of those, 160 have lost their jobs, the administrator confirmed.