Telford-based modular construction firm Elements Europe has gone into administration, leaving over 200 subcontractors unpaid and triggering the loss of nearly all its workforce. The company, known for its offsite volumetric design and room module manufacturing, collapsed under the weight of two major loss-making projects.
Key Highlights:
- Company: Elements Europe (Modular Construction Specialist)
- Location: Telford, UK
- Administrator Appointed: Interpath Advisory (4 June 2025)
- Outstanding Supplier Dues: £8.7 million (to over 200 subcontractors)
- Total Company Debt: £108 million
- Projects Impacted:
- 23-storey hotel and office complex in Hackney
- 555-unit residential scheme in Birmingham
- Reasons for Collapse:
- Two loss-making major contracts
- Cost overruns and water ingress defects
- Accumulated trading losses of £80.6 million over 3 years
- Support Prior to Collapse: Unsecured loan of £71.8 million from shareholder GS
- Employees Affected:
- 199 made redundant
- 14 retained for winding down operations
- 4 transferred via TUPE to Hackney project
According to a report from administrators Interpath Advisory, Elements Europe owed £8.7 million to suppliers and had total liabilities of £108 million. The business, which attempted to transition from module manufacturing to full-scale contracting, was heavily impacted by project delays, water ingress issues, and cost overruns, especially on two high-profile developments in Hackney and Birmingham.
The Hackney project, a 23-storey hotel and office tower, was sold for just £100,000 to GS’s real estate division — GS being the company’s majority shareholder and source of a £71.8 million unsecured loan that kept the firm temporarily afloat.
Administrators Sam Birchall and Steve Absolom confirmed that 199 of the company’s 217 employees have been made redundant, while the remainder are either supporting the winding down or have been transferred.
“Sadly, Elements Europe has not been immune to the headwinds facing the construction sector,” said Birchall, pointing to a wider trend affecting companies engaged in modern methods of construction (MMC).
The downfall follows similar collapses in the MMC sector, including Jans Offsite Solutions in May and Connect Modular in January — underlining the increasing volatility in the modular construction space.
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