Creditors to miss out on millions of pounds after modular housing group’s failure

Creditors of Urban Splash House will lose out on millions of pounds after the modular housing firm collapsed last month.

The Manchester-based company made 160 staff redundant at sites across the East and West Midlands when administrators Teneo were appointed. The firm also owns the Port Loop site in Birmingham and had a major factory in Alfreton, Derbyshire.

Speaking last month joint administrator Adrian Berry said the failure followed “various operational issues relating to the factory in Alfreton”.

The administrators were appointed to several related companies, including Urban Splash House Holdings, Urban Splash House, Urban Splash Modular, Urban Splash House Investments, Poot Loop, and Port Loop Holdings.

While the exact position is complicated by intercompany creditors, it is estimated that the related companies owed creditors around £20m.

The assets of the collapsed companies are estimated to realised around £10m.

Joint venture partner Japanese housebuilder Sekisui House is the largest individual creditor, owed £7.6m.

Urban Splash companies which aren’t part of the administration are owed more than £2.7m. The group has previously said there would be “no impact” on the wider Urban Splash group or its operations.

Other large creditors include Salford City Council, owed £860,000.