Liverpool-based company Ideal Modular Homes was sold through a pre-pack administration after struggling with cash flow over payment issues.
The £ 3million companies have been bought by a new owner and in a statement trading “continues”[s] uninterrupted”.
The company, which was established in June 2017, was hit by the coronavirus crisis and went out of business during the spring lockdown. In June of this year, she secured a cash injection under Close Asset Finance’s Coronavirus Business Interruption Loan (CBILS) program.
According to an administrators report, however, Ideal Modular was hit with a non-payment payment advice from a customer regarding “a large payment application” in September. No further information about the job was given in the report, but the lower payment would have affected her ability to borrow money and ultimately led to the administration of the pre-pack.
Quantuma directors have said the company owes £ 6.8million to non-preferential creditors and expects a shortfall of £ 6.4million. Close Asset Finance owes £ 1.7million.
The company was acquired by IMDH, a company incorporated in November and whose directors include Tom White, a member of the previous Ideal Modular board, and Christopher Snape, one of its shareholders. He kept the 76 employees on his books and injected new investments into the company.
In a statement, the company said, “The transaction guarantees the continuity of the management of the company, a strong financial platform for the future of the company and protects jobs.
“The process will create a seamless transfer of assets and employees from the Ideal Modules Limited legal entity to a new legal entity – IDMH Limited – and facilitate a quick and smooth transfer of the business, allowing trading to continue without disruption.
“We want to assure both customers and employees that there is no risk to the operation of the business and that all activities will continue as normal. This is a positive step for the future of the company.
Tom White, formerly of JP Morgan, has been appointed as the new chief executive, replacing company founder Luke Barnes, who has left.
Previous Ideal Modular jobs included a 156 apartment project called Uptown Irwell in central Manchester. In January he won a spot in a £ 2 billion framework for London-based housing association Hyde Group.