Tue, 11 Mar 2025 | ADMINISTRATION
Half a century old East Yorkshire caravan manufacturer Atlas Leisure Homes has fallen into administration with the loss of nearly 200 jobs.
Mark Hodgett and Allan Kelly, partners at FRP Advisory, were appointed joint administrators of Atlas Leisure Homes on March 11.
The company which has been in business since April 1973 made static caravans, lodges and holiday homes from its Hull headquarters.
Atlas, which opened a second manufacturing site in 2020 and saw a significant increase in demand during the pandemic, had seen its order book decline at a time when operating costs have increased significantly.
According to its most latest set of financial results for the year to September 30, 2023, the market instability post-Covid was caused by inflation and the war in Ukraine resulting in an oversupply of holiday homes. In response it has reduced production, made employees redundant, reduced working hours and mothballed its second production facility.
It also refinanced the business through a sale and leaseback of the land it used for storing caravans. It had revenues of around £68.7 million.
About 180 roles within the business have been made redundant with the administrators now supporting employees with applications to the Redundancy Payments Service.
A small number of staff have been retained to assist the administrators with an orderly wind down of the business.
Mark Hodgett, partner at FRP and joint administrator of Atlas Leisure Homes, said: “The caravan and holiday homes industry benefitted significantly from the boom in staycations during and after the Covid-19 pandemic. However, with demand falling away and an influx of new homes having come to the market, operating conditions have become extremely difficult for manufacturers who are contending with the dual challenge of increased costs. Despite the best efforts of the management team, unfortunately the business was unable to continue trading solvently without new investment.”
Regrettably, he added, this has meant the loss of a long-standing business and employer in the community.
Steven McGawn, managing director of Atlas Leisure Homes, said: “We, alongside our competitors, have shared in the market downturn that followed the pandemic in what has been a very challenging few years for everyone in the industry. To allow the business to survive the Board and shareholders had engaged with third party investors, and we had generated strong interest in taking the business forward. However, ultimately a deal wasn’t possible and it is with great regret that we now must place the business into administration. It is an incredibly disappointing time as I know a huge amount of people will look back on our 50 plus years of trading with great pride and fondness.”
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