Modular builder TopHat has avoided being wound up after agreeing a deal with one of its creditors.
Developer Harworth filed winding-up petitions against two TopHat entities on 2 August, which were heard at the High Court in Leeds yesterday (13 August). Both parties have agreed to dismiss the case, Construction News understands.
The petitions, which if successful would have forced the company into liquidation, were registered against Jersey-based parent company TopHat Enterprises Ltd and subsidiary TopHat Communities Ltd, which installs the modules.
Winding-up petitions are considered a last-resort attempt by firms owed more than £750 to retrieve their cash.
The volumetric housebuilder has had a rough start to the year. It mothballed a planned factory in March, a month after starting a consultation on 70 job cuts. Managing director Andrew Shepherd left the firm shortly after.
Despite a £70m boost from investors including Persimmon, Aviva and Goldman Sachs, TopHat has struggled to become profitable. It has reported three straight years of pre-tax losses: £5.1m, £19.4m and £21.3m in 2022, 2021 and 2020 respectively.
Persimmon revealed last week that it had written off £25m in investments and loans for the modular specialist, although it said it would continue to work with TopHat as it repositioned to focus on its facade product.
Harworth has been approached for comment. TopHat declined to comment.
