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UK: Atlas Leisure Homes, an East Yorkshire-based caravan manufacturer, has entered administration, resulting in the loss of approximately 180 jobs.
The company, headquartered in Hull, has been producing static caravans and holiday lodges for nearly five decades.
In its most recent financial statements for the year ending 30 September 2023, Atlas Leisure Homes reported a turnover of £68.8 million, with a pre-tax profit of £69,000.
During the Covid-19 pandemic, the company experienced a surge in demand, leading to the establishment of a second manufacturing facility in 2020. However, a subsequent decline in orders, coupled with rising operational costs, placed significant financial strain on the business.
Despite undergoing two restructuring efforts in the past two years and seeking new investment, the company was unable to maintain solvency. Administrators from FRP Advisory have been appointed to oversee the process, with a small number of employees retained to assist with the company’s wind-down operations.
Mark Hodgett, partner at FRP and co-administrator of Atlas Leisure Homes, told companyrescue.co.uk: “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,” he added.
Steven McGawn, managing director of Atlas Leisure Homes, said: “Unfortunately, despite the management team’s best efforts, the company could not continue to operate profitably without further funding. Unfortunately, this has resulted in the loss of a long-standing company and employer in the neighbourhood.
“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.
“The board and shareholders had enlisted outside investors to help the business thrive, and we had created a lot of interest in moving the company ahead. But in the end, a solution couldn’t be reached, and we regretfully had to put the company into administration.
“I know a lot of people will look back on our more than 50 years of trading with great pride and fondness, so it is a very disappointing time,” he added.
The administrators are currently assisting affected staff members with applications to the Redundancy Payments Service.
