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UK firm TopHat to wind down modular housing operation
22 October 2024
A digital render of how TopHat’s planned new modular factory in Corby, Northamptonshire was expected to look (Image: TopHat)
UK-based construction company TopHat is to wind down its modular housing operations as it succumbs to a “challenging market environment”.
The company said the winding down would be an “orderly” process that would allow all existing factory orders to be completed. Eventually, however, most of its factory staff are expected to be made redundant.
Founded in 2016, TopHat attracted investment from the likes of Goldman Sachs and in 2023 announced that it had raised £70 million (US$91 million) from housebuilder Persimmon and insurance company Aviva. The company also secured a £15 million (US$19.5 million) loan from Homes England to support the development of a new factory.
However, the company was losing money and in August this year, Persimmon wrote off its £25 million (US$32.5 million) investment in the company, as TopHat tried to fend off a winding-up petition from a developer.
A planned 650,000 sq ft (60,387 sq m) factory in Corby, Northamptonshire, which would have been Europe’s largest modular homes facility, capable of delivering one house every hour, was due to open last year but its opening was also paused. The company currently has a 125,000 sq ft (11,613 sq m) factory in Derby.
TopHat said in a statement, “In response to the challenging market environment over the last several years, TopHat has been gradually reducing its workforce.
“Unfortunately, due to the continued reduction in future pipeline, TopHat is in the process of making most of the factory staff redundant by following a statutory consultation process.
“This orderly wind-down of volumetric operations will put the business in a position to assess all future options.”
TopHat’s move follows the collapse last year of two other prominent UK-based modular homes companies – Ilke Homes and Legal & General Modular Homes.
TopHat said it nonetheless had a “strong belief” that there is a need for Category 1 (3D primary structural systems), and Category 2 (2D primary structural systems) modular and that it hoped it could “capitalise on this in the future”.
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