UK-based modular homes builder Ilke Homes is set to face potential lawsuit action from its more than 80 ex-employees over an alleged improper redundancy process.

The company entered administration last week and appointed administrators from consultancy AlixPartners.

This resulted in the closure of its North Yorkshire plant with immediate effect and left most of its 1,150 staff at the site redundant.

Ilke's affected employees alleged that the business did not adequately consult them prior to the redundancies.

The employees claim they were sent home with payment around two weeks ago but were not informed that Ilke was in difficulties and was searching for a new investor.

Nearly 80 of these former employees have already engaged with Manchester-based employment solicitors Aticus Law to investigate issues about how the redundancy process was handled.

Aticus will examine if the ex-staff members are qualified to file a 'Protective Award' claim against Ilke.

Aticus' managing partner Edward Judge said: “Further to the collapse of Ilke Homes, we have been instructed by more than 80 former employees who have lost their jobs and who 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.”