One of Britain’s largest care home groups, Four Seasons Health Care, has gone into administration, raising fears for hundreds of staff and elderly residents across Tayside and Fife.
The firm runs ten homes in Tayside and Fife – caring for as many as 450 residents.
The company has appointed corporate undertakers at Alvarez & Marsal (A&M) to carry out the process following an aborted sale attempt, but insists that operations will be unaffected by the move.
Those include Craigieknowes in Perth, Craighead Nursing Home in Newport-on-Tay, Bearehill Care Home in Brechin, Benholm Care Home in Forfar and Havencourt Care Home in Stonehaven.
They also own Gowrie House in Kirkcaldy, Earlsferry House in Elie, Lunardi Court Care Home in Cupar, Benarty View in Kelty and Henderson House in Dalgety Bay.
The collapse is the biggest care homes failure since Southern Cross went bust in 2011.
“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,” Four Seasons said.
A&M will now attempt to sell the group out of administration.
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.”
Private equity vehicle Terra Firma bought Four Seasons for £825 million in 2012 and has been forced to stomach a £450 million writedown on its investment.
There have been acute worries over Four Seasons’ financial performance and debt pile for several years.