Thu, 17 Dec 2020 | BUSINESS SALE
Liverpool-based modular housing firm Ideal Modular Homes has been acquired in a pre-pack administration after running into cashflow difficulties. The company has been acquired by newly formed IDMH from administrators Quantuma and trading will continue uninterrupted.
IDMH is headed by Tom White, a former board member of Ideal Modular who will now become the company’s new CEO, and Christopher Snape, an Ideal Modular shareholder. The new owners’ pre-existing connection to the firm mean that this is the sort of pre-pack acquisition that may face greater scrutiny once proposed new regulations come in next year.
Ideal Modular Homes was established in 2017 and had become a high-profile operator in the emerging modular homes market. However, the firm was impacted by the COVID-19 crisis which forced it to close operations in the initial spring lockdown.
The company received a CBILS cash injection in June and, in August, was part of a consortium that won a £300 million contract to build 750 affordable rent council homes in the London borough of Greenwich.
In spite of this, Ideal Modular’s COVID-related struggles were compacted when the company received a pay-less notice in regard to “sizeable payment application” from a customer in September. According to administrators, the lower payment impacted the company’s ability to borrow money, ultimately leading to its administration.
Following the acquisition, the company said: “Ideal Modular Homes, North-West based manufacturer, has secured new investment and has been restructured through a pre-pack administration process. The transaction ensures continuity to the running of the business, a strong financial platform for the company’s future and protects jobs.”
“The process will create a seamless transfer of assets and employees from the legal entity Ideal Modules Limited into a new legal entity – IDMH Limited – and facilitates a quick and smooth transfer of the business, allowing trading to continue uninterrupted.”
“We’d like to assure both clients and employees that there is no risk to the running of the company and all business will continue as normal. This is a positive step for the company’s future. A new chief executive officer, Tom White, has been appointed with a view to accelerate Ideal’s growth. Tom will succeed founder Luke Barnes, who has moved on to pursue new ventures.”
For more on how invoicing and payment issues are creating problems for construction firms during the COVID-19 pandemic, check out this exclusive insight.
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