Four Seasons Health Care with 22,000 patients goes into administration putting 20,000 jobs at risk


FOUR Seasons Health Care has gone into administration, raising fears for its 22,000 elderly residents.

Two of the holding companies’ behind the care home giant appointed administrators today after struggling to repay their debts.

 Four Seasons looks after 22,000 elderly residents

Getty – Contributor

Four Seasons looks after 22,000 elderly residents

The collapse of the company, which has 20,000 staff members across its 322 homes, is the biggest care homes failure since Southern Cross went bust in 2011.

Four Seasons insists that operations and staff will be unaffected by the move to place its parent companies – Elli Investments and Elli Finance – into administration, and that no homes are currently scheduled to close.

A spokesperson told The Sun the aim of the administration process, handled by Alvarez & Marsal (A&M), is to secure a sale of the entire business.

They said: “The operating companies under which the care home and hospital operations sit are not in administration and continue to be run as normal by the existing leadership teams.”

 The company has 322 homes across the UK

Alamy

The company has 322 homes across the UK

Late last year, US hedge fund H2 Capital Partners, which effectively controls Four Seasons, ordered a sale of the crisis-hit company, which is struggling under a £525million debt pile.

A few weeks ago, Four Seasons insisted that it had “sufficient operating liquidity” to be able to complete the sale process.

Investment firm Terra Firma bought Four Seasons for £825million in 2012 and has been hit with a £450million writedown on its investment.

In the past few years, the company has suffered from a cut in local authority fees, rising costs and the introduction of the national living wage and has continuously also warned over its long-term stability.

READ  Pension age should rise to 75, Tory think tank report says
 It insists the administration process won't affect staff or residents

Getty – Contributor

It insists the administration process won’t affect staff or residents

Dr Claire Royston, group medical director of Four Seasons Health Care, said: “Today’s news does not change the way we operate or how our homes are run or prompt any change for residents, families, employees and indeed suppliers.

“Our priority remains to deliver consistently good care. It marks the latest stage in the group’s restructuring process and allows us to move ahead with an orderly, independent sales process.”

Richard Fleming, joint administrator at A&M, said: “We are committed to ensuring the group delivers continuity of care as we work to undertake the independent sales process.

“The group has continued to improve its quality ratings across their portfolio of homes and hospitals.

“The group’s operations are fundamentally strong and a successful sales process will enhance those operations’ ability to thrive.”

Workers at a Four Seasons care home were earlier suspended after a picture of them “asleep on the job” went viral on Twitter.

Last week, Debenhams named the 22 of 50 stores that it plans to close as part of a plan to save the chain from collapse.

READ  Bargain Booze owner Conviviality ‘close to falling into administration’ putting 2,600 jobs at risk

It comes after experts predicted that 75,000 high street jobs will be lost this year.

Debenhams falls into administration with 50 stores to close as part of deal to save the chain


We pay for your stories! Do you have a story for The Sun Online Money team? Email us at money@the-sun.co.uk






READ SOURCE

LEAVE A REPLY

Please enter your comment!
Please enter your name here