This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.bbc.co.uk/news/business-48102859
The article has changed 9 times. There is an RSS feed of changes available.
Version 1 | Version 2 |
---|---|
Four Seasons Health Care facing administration | Four Seasons Health Care facing administration |
(32 minutes later) | |
One of Britain's largest care home groups, Four Seasons Health Care, is on the brink of administration. | One of Britain's largest care home groups, Four Seasons Health Care, is on the brink of administration. |
Two of the holding companies behind the firm are expected to appoint administrators on Tuesday after struggling to repay their debts. | Two of the holding companies behind the firm are expected to appoint administrators on Tuesday after struggling to repay their debts. |
The group serves about 17,000 residents and patients and employs some 20,000 staff. | The group serves about 17,000 residents and patients and employs some 20,000 staff. |
If it goes under, it would not affect care arrangements or lead to the closure of homes. | If it goes under, it would not affect care arrangements or lead to the closure of homes. |
According to Sky News, which first reported the news, it would be the biggest collapse of a care homes business since Southern Cross in 2011. | According to Sky News, which first reported the news, it would be the biggest collapse of a care homes business since Southern Cross in 2011. |
Four Seasons Health Care said it would issue a statement later on Tuesday. | Four Seasons Health Care said it would issue a statement later on Tuesday. |
The GMB union said the government needed to step in urgently to reassure Four Seasons staff and residents. | |
Rehana Azam, GMB national secretary, said: "The possible collapse of Four Seasons shows our care system is in crisis, it is crumbling beneath us because the funding isn't there." | |
Professional services firm Alvarez & Marsal (A&M) has been chosen to handle the administration. | Professional services firm Alvarez & Marsal (A&M) has been chosen to handle the administration. |
It is understood that while the holding companies - Elli Finance (UK) and Elli Investments - are on the brink of collapse, the care homes business itself is not. | It is understood that while the holding companies - Elli Finance (UK) and Elli Investments - are on the brink of collapse, the care homes business itself is not. |
Administrators will seek to sell the group in the coming months, freeing it of its historic debts. | Administrators will seek to sell the group in the coming months, freeing it of its historic debts. |
Four Seasons, which has 253 residential and nursing care homes, has been struggling to restructure its debt pile of more than £500m. | Four Seasons, which has 253 residential and nursing care homes, has been struggling to restructure its debt pile of more than £500m. |
Terra Firma Capital Partners, the private equity firm led by Guy Hands, has owned Four Seasons since 2012. | Terra Firma Capital Partners, the private equity firm led by Guy Hands, has owned Four Seasons since 2012. |
But it is no longer in control of the business, as a large amount of its debt is being held by US hedge fund H/2 Capital Partners. | But it is no longer in control of the business, as a large amount of its debt is being held by US hedge fund H/2 Capital Partners. |
A number of care businesses have run into trouble recently, raising questions about the current funding model for social care. | A number of care businesses have run into trouble recently, raising questions about the current funding model for social care. |
Last year, Allied Healthcare, which supports 13,000 people, said it was struggling with debts, blaming low fees paid by councils. | Last year, Allied Healthcare, which supports 13,000 people, said it was struggling with debts, blaming low fees paid by councils. |
The Care Quality Commission, a regulator, later issued a notice saying it had serious doubts about the firm's future. | The Care Quality Commission, a regulator, later issued a notice saying it had serious doubts about the firm's future. |
A majority of Four Seasons' operations are funded by the state, with about a fifth of them funded privately. | A majority of Four Seasons' operations are funded by the state, with about a fifth of them funded privately. |