Clare Kennedy, partner and MD for the London division at AlixPartners, confirmed to DFT that the firm has been appointed as administrators to handle Ilke Homes’ situation on Friday, 30th June.

Aticus Law said it has already been instructed by more than 150 affected individuals and is now in the early stages of investigating concerns around how the redundancy process was managed.

According to a statement made by the law firm, the staff involved stated they were sent home around two weeks ago with pay, but were made aware of the company’s troubles and its search for new investors — however, last week they were called to a meeting where they were advised they were being let go.

As part of the legal process, Aticus Law will also determine whether ex-employees are eligible to apply for a protective award claim against the company.

•   Hilltop launches real estate funding and management platform
•   ilke Homes seeks permission for Kent residential scheme
•   Ilke Homes and Orbit Homes team up for sustainable development in Hastings

The firm said if its clients are able to pursue a successful claim, those involved in the challenge will receive up to eight weeks’ worth of pay in compensation, with a cap of £571 per week.

Edward Judge, partner and defence solicitor at Aticus Law said: “The current economic climate and increase in the day-to-day running costs of a business means that the headlines are constantly dominated by companies going into administration.

“Further to the collapse of Ilke Homes, we have been instructed by more than 150 former employees who have lost their jobs and are now looking to pursue a protective award against the company.

“While there are reports to suggest that the business will be bought out of administration, this does not prevent people who have already been made redundant from pursuing a claim, even if they are offered their jobs back in due course.

“For many of our clients that would be the ideal outcome, but the protective award [can be] claimed [if] the redundancy process was not followed correctly, which of course has a short-term impact on a person’s financial wellbeing.”

DFT has contacted Ilke Homes for comment, but the firm has not yet responded.