Connect Modular Ltd, which is part of the Wee House Group based in Cumnock, East Ayrshire, has collapsed with a total of 48 members of staff being made redundant across the company, according to STV News.
The company is known for providing modular homes to housing associations, local authorities, and community trusts across the UK as part of the wider firm.
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Last year, the company, alongside the West of Scotland Housing Association, submitted plans to Glasgow City Council for the region’s ‘first operational net-zero modular housing development’.
The building firm also has developments, which are yet to be completed, in Clydebank, Garnock Valley, Livingston, and Penicuk.
STV News also reported that Hope South West Limited, another firm under the Wee House Group, has also entered provisional liquidation with ten employees being made redundant, adding to the existing 38 jobs lost.
Michelle Elliot and Callum Carmichael of FRP Advisory were appointed as joint administrators of Connect Modular and joint provisional liquidators to Hope South West on January 7.
They revealed the companies had made losses on several historic contracts and the businesses faced ‘unsustainable pressure’.
Ms Elliot told STV News: “Connect Modular Limited and Hope South West Limited had built a strong reputation and track record in delivering high quality, affordable modular homes across Scotland.
“Unfortunately, following losses made on a number of historic contracts and rising operational costs, the businesses were facing significant cash flow pressure.
“Despite the best efforts of the director in exploring alternatives in recent weeks, the cash position deteriorated significantly placing unsustainable pressure on the business.
“We will now focus on marketing the assets for sale and on providing every possible support to the staff for claims to the Redundancy Payments Office and accessing support agencies such as PACE.”
Meanwhile, a statement on the firm’s website reads: “Administration of Connect Modular – January 6, 2025.
“Michelle Elliot and Callum Carmichael, partners with specialist business advisory firm FRP Advisory, have been appointed as Joint Administrators of Connect Modular Limited on January 6.
“The affairs, business and property of the Company are being managed by the Administrators who act as agents of the Company without personal liability.
“Please note, Michelle Elliot and Callum Carmichael have also been appointed as Joint Provisional Liquidators to a related company, Hope South West Limited, on January 7.”
