Ideal Modular Homes rescued in pre-pack administration deal
The Liverpool-based modular housing supplier has entered into administration and immediately been acquired by a newly formed company promising fresh investment.
Administrators Quantuma were appointed to take over the running of the business while a buyer was sought.
Ideal said in a statement: “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.”
The company statement continued: “Tom has been an investor in Ideal since inception and has worked closely with the business over this period. Tom has significant experience scaling early-stage companies across a number of industries and will draw on this experience to help accelerate Ideal’s growth. Tom also previously worked at JP Morgan for 11 years, where he advised some of the country’s largest companies on M&A, debt and equity issuance and corporate strategy.”
Founder Luke Barnes established the company in 2017 and it quickly became a high-profile player in the emerging market for modern methods of construction. Ideal won awards and, in August, a £300m contract with Greenwich Council as part of a consortium.
The business began with a factory in south Liverpool, kitted out using £5m of investment from high net worth individuals, and expanded to multiple premises on the back of a swelling order book. Clients included Property Alliance Group on apartment schemes in and around Manchester. Ideal was awarded places on supplier frameworks for large housing association Hyde and for Gateshead Council.
Barnes resigned as a director in October, recorded in the past week on Companies House. Andre Muller, chief financial officer, was appointed as a director in the same week in October, having joined the business in May from furniture manufacturer Steinhoff.
Last month, Dan Pollard, head of manufacturing at Ideal, joined Urban Splash’s modular arm, House.
Prior to the administrators appointment Bibby Financial Services registered a charge as security against land, property, plant and machinery at Ideal Modules, trading as Ideal Modular Homes.
IDMH Limited has three directors: Christopher Snape, Tom White and Andre Muller.