One of the UK's largest care home groups, Four Seasons has fallen into administration.
The company, which operates 322 care homes with 22,000 elderly residents, has called in professional services firm, Alvarez & Marsal (A&M) to handle the administration.
Four Seasons has struggled with cuts to local authority care fees and rising costs, and has repeatedly warned about its long-term stability. However, while the holding companies - Elli Finance (UK) and Elli Investments - are in administration, the operating companies that run Four Season homes are not.
The group, which has 20,000 employees, stated, “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.”
Late last year, US hedge fund, H2 Capital Partners, which effectively controls Four Seasons, ordered a sale of the company, which has debt of £525m.
Dr Claire Royston, Group Medical Director of Four Seasons Health Care, commented, “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 of Elli Investments Limited and Elli Finance (UK) Plc (holding companies only) added, “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.”