Sub-standard work at the Urban Splash modular housing production plant, it has been revealed, was the catalyst for bringing down one of the UK’s most prominent modular factories. It really doesn’t matter if your factory is owned by another company or it’s owned locally; shoddy work and improper execution of design can bring about bankruptcy.
Documents seen by TheBusinessDesk.com show that the collapse of Urban Splash and Sekisui’s modular housing firm in May can be traced back to under-par production processes at the factory in Alfreton, Derbyshire.
Administrators said that “design issues resulting in production defects” brought spiraling costs which couldn’t be passed on to the customer.
These mistakes “eroded confidence with the group’s key stakeholders,” according to administrators, which “in turn restricted the group’s ability to secure future developments”.
Last month it was revealed that the joint venture, Urban Splash House, will lose out on millions of pounds after the modular housing firm collapsed last month.
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