Modular builder TopHat is to lay off staff and wind down its modular housing operations, it has announced.<\/p>\n
The latest blow to the modular housing sector comes a month after Construction News<\/em> reported that the firm had seen off a winding-up petition<\/a> lodged by one of its creditors.<\/p>\n Top Hat, which is backed with funding from Goldman Sachs, blamed the decision on \u201cchallenging\u201d market conditions and a dwindling pipeline.<\/p>\n \u201cThis orderly wind down of volumetric operations will put the business in a position to assess all future options,\u201d the company said in a statement.<\/p>\n \u201cIt is our strong belief that there is a continued need for category 1 [3D module] and category 2 [2D panel] modular in the UK and we hope that we can capitalise on this in the future.\u201d<\/p>\n According to the firm\u2019s latest accounts for the year to 31 October 2022, TopHat employed 212 people at its 11,600 square metres Derby factory. It posted a pre-tax loss of \u00a35.1m despite turnover almost doubling to \u00a313.4m.<\/p>\n In February this year, the company launched a consultation over 70 potential job cuts, CN <\/em>reported.<\/p>\n In August, housebuilder Persimmon wrote off \u00a325m<\/a> it had invested in and loaned to TopHat.<\/p>\n The housebuilding giant has invested \u00a3700,000 in Derby-based TopHat and holds a further \u00a324.3m of long-term loan notes from the company.<\/p>\n However, in its interim results announcement, Persimmon said it had reviewed the investment and loans and now believed they were worthless.<\/p>\n TopHat announced in March that it had paused plans<\/a> for a 60,000 square metre manufacturing site in the South Midlands due to \u201cmarket conditions\u201d.<\/p>\n The firm initially said the Corby factory would be operational last year but its latest announcement leaves uncertainty as to when the long-promised facility will finally be ready.<\/p>\n The plant was planned to be seven times bigger than TopHat\u2019s existing Derby site, and capable of creating one house per hour.<\/p>\n Last year, TopHat received a \u00a315m loan from national housing agency Homes England.<\/p>\n In an email statement today, Homes England said: \u201cWe are aware of TopHat\u2019s current position and continue to support the business.\u201d<\/p>\n It added: \u201cDespite the current challenging market conditions, housebuilders continue to invest in MMC in recognition of the vital role technology has to play in delivering more high-quality, energy efficient homes at pace and scale.\u201d<\/p>\n TopHat is the latest in a series of modular firms to experience difficulties.<\/p>\n Despite a strong start for such businesses in the sector, concerns started to grow over the low margins associated with modular developments.<\/p>\n In August, modular housing specialist ModPods International appointed administrators<\/a> after spiralling relocation costs hit its bottom line.<\/p>\n Investor\u00a0L&G also\u00a0wound down its offsite business<\/a> in 2023 after years of heavy losses.<\/p>\n Modular specialist\u00a0Urban Splash House entered administration<\/a>\u00a0in May 2022, after it blamed operating issues at its factory in Alfreton.<\/p>\n Other specialists including\u00a0Ilke Homes<\/a>,\u00a0Mid Group<\/a>,\u00a0Eco Modular Buildings<\/a>\u00a0and\u00a0Caledonian Modular<\/a> have also failed in recent years.<\/p>\n","protected":false},"excerpt":{"rendered":" Modular builder TopHat is to lay off staff and wind down its modular housing operations, it has announced. The latest blow to the modular housing sector comes a month after Construction News reported that the firm had seen off a winding-up petition lodged by one of its creditors. Top Hat, which is backed with funding …<\/p>\n","protected":false},"author":129711,"featured_media":440670,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false},"categories":[552,39315],"tags":[],"yoast_head":"\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n