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Giant social care group calls in administrators
Four Seasons Health Care, one of the UK’s largest private healthcare groups, has called in administrators for its two holding companies, following struggles with debt.
Elli Investments and Elli Finance (UK), which are liable for Four Seasons’ £625m debt pile, have been placed into administration, Four Seasons announced today.
But the group insisted that the business would continue to “run as normal” as the holding companies do not directly own or operate any care homes.
The group currently operates 253 residential and nursing care properties, with around 17,000 residents and patients. The business also employs about 20,000 staff.
In the same announcement today, Four Seasons said it will officially go up for sale this Friday as part of what it is calling a “restructuring”.
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Dr Claire Royston, group medical director of Four Seasons, 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.”
Commentators have suggested that the news will provoke serious questions for the government about the funding of social care.
In the wake of the news, the Liberal Democrats’ press office tweeted: “Another social care crisis is unfolding on the Tories watch as they repeatedly delay confronting the funding and structural problems in social care.”
Professional services firm Alvarez and Marsal will oversee Elli Investments and Elli Finance’s administration and the sale of Four Seasons.
Richard Fleming, a managing director at Alvarez and Marsal, 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.”
