180 jobs lost as caravan manufacturer falls into administration
Administrators have been appointed to an East Yorkshire caravan manufacturer and 180 jobs lost, following a period of difficult trading.
Mark Hodgett and Allan Kelly, partners at FRP Advisory, were appointed joint administrators of Atlas Leisure Homes today – 11 March.
With a history spanning more than 50 years, Atlas made static caravans and holiday homes from its base in Hull.
The company, which opened a second manufacturing site in 2020 and saw a significant increase in demand during the pandemic, had seen its order book decline at a time when operating costs have increased significantly.
The decision to appoint administrators follows attempts to secure new investment, with the business having undergone two additional restructuring exercises over the course of the last two years.
About 180 roles within the business have been made redundant with the administrators now supporting employees with applications to the Redundancy Payments Service.
A small number of staff have been retained to assist the administrators with an orderly wind down of the business.
Mark Hodgett, partner at FRP and joint administrator of Atlas Leisure Homes, said: “The caravan and holiday homes industry benefitted significantly from the boom in staycations during and after the Covid-19 pandemic.
“However, with demand falling away and an influx of new homes having come to the market, operating conditions have become extremely difficult for manufacturers who are contending with the dual challenge of increased costs.
“Despite the best efforts of the management team, unfortunately the business was unable to continue trading solvently without new investment.
“Regrettably this has meant the loss of a long-standing business and employer in the community.”
Steven McGawn, managing director of Atlas Leisure Homes, said: “We, alongside our competitors, have shared in the market downturn that followed the pandemic in what has been a very challenging few years for everyone in the industry.
“To allow the business to survive the Board and shareholders had engaged with third party investors, and we had generated strong interest in taking the business forward.
“However, ultimately a deal wasn’t possible and it is with great regret that we now must place the business into administration.
“It is an incredibly disappointing time as I know a huge amount of people will look back on our 50 plus years of trading with great pride and fondness.”
