Manufacturing and Engineering

After a period of challenging trading, East Yorkshire caravan manufacturer, Atlas Leisure Homes, has appointed administrators at FRP Advisory and laid off 180 employees.From its base in Hull, Atlas has been manufacturing static caravans and vacation homes for almost 50 years.It recorded turnover of £68.8m in its most recent set of accounts, covering the year ending 30 September 2023, with a pre-tax profit of £69,000.The business, which had a sharp rise in demand during the epidemic and constructed a second manufacturing facility in 2020, had experienced a drop in its order book at a time when operational expenses had skyrocketed.The company has undergone two more reorganisation exercises in the last two years, and the decision to appoint administrators comes after efforts to obtain new financing.With the administrators now assisting staff members with applications to the Redundancy Payments Service, around 180 positions within the company have been eliminated.A few employees have been kept on board to help the administrators conduct a an orderly wind up of the company.“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.”  stated Mark Hodgett, partner at FRP and co-administrator of Atlas Leisure Homes.However, operating conditions have gotten very tough for producers, who are also facing the simultaneous problem of rising costs, as demand has decreased and a flood of new homes has entered the market."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." stated Steven McGawn, managing director of Atlas Leisure Homes."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."

Read