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Care home giant up for sale as holding companies go into administration

Image credit: PA

Care home giant up for sale as holding companies go into administration

Four Seasons Health Care which operates more than thirty care homes in Scotland has gone into administration.

An announcement from the care group confirmed that two of its holding companies had gone into administration and a sales process, described by the group as “the next stage of its restructuring”, will begin on 3 May.

The group stated that funds have been secured to continue to operate its care facilities during the sales process, and the companies that operate the group’s more than 250 care homes and hospitals across the UK are not in administration and continue to operate as normal.

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.”

GMB Scotland Senior Organiser Drew Duffy said: “This is yet another case in point of the crisis in our care sector.

“Our immediate priority is the safeguard of our members’ jobs and conditions across Four Seasons homes in Scotland and to help tackle any uncertainty for an estimated 1,800 service users and their families.

“That’s why we have asked for an urgent meeting with the Scottish Government and COSLA representatives. We will also continue to work with our union across the rest of the UK and in our engagements with the employer, administrators and the UK Government.

“Four Seasons is just the tip of the iceberg and there is a far wider debate that needs to be had about the sustainability of our care sector in its present form.

“Let’s be clear that the public purse is largely funding these failing providers and the financiers behind them, while the rights of workers at the coal face, mainly low paid women, are constantly under attack. This is a toxic mix for staff and service users alike.

“If we leave this unchallenged then we will only continue to revisit the problems we are facing today in Four Seasons elsewhere in the sector. This must stop and the sector must change.”

Richard Fleming, Mark Firmin and Richard Beard of Alvarez & Marsal Europe LLP, have been appointed as Joint Administrators to the holding companies.

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