Insolvency practitioners from FRP advisory were appointed as administrators to Connect Modular Limited on 6th January 2025.
They have also been appointed joint provisional liquidators to related company, Hope South West Limited, on 7th January.
Both companies have ceased trading and all 48 employees (38 from Connect Modular and 10 from Hope South West) have been made redundant.
FRP said that the companies had suffered financial challenges in recent months due to rising operational costs and contract losses, putting pressure on trading operations and cash flow.
Connect Modular was set up by Jennifer Higgins in 2013 to make prefabricated timber-frame houses. It specialises in affordable developments for local authorities and housing associations.
Since 2022 it has been part of Higgins’ Velocity Modular group, which also includes Hope Homes (Scotland), The Wee House Company and the groundworks division Hope South West.
Hope Homes, previously owned by Higgins’ father Ian Hope, and The Wee House Company – which specialises in bespoke solutions for small sites – are not subject to administration.
FRP partner Michelle Elliot, joint administrator of Connect Modular and joint provisional liquidator of Hope South West, said: “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.”
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