WATCH: Jersey care home operator collapses into administration

Wednesday 01 May 2019

A UK residential care group, which operates elderly care homes in Jersey, has collapsed into administration.

Financially-troubled Four Seasons Health Care (FSHC), which is one of Britain’s largest care groups with 17,000 residents and three homes in Jersey (Silver Springs, Highlands and La Haule, which have 194 beds between them), made the announcement yesterday.

Having struggled to repay its debts amid rising costs and cuts to local authority fees, FSHC yesterday announced that it would be entering a period of restructuring.

Two of the holding companies underpinning the care group will now be entering administration. Neither directly owns or runs any hospitals or care homes.

Video: Dr Claire Royston explains the next steps for Four Seasons Health Care, and provided reassurance to residents of the group's homes.

FSHC pledged that its day-to-day operations would not be affected during the independent sales process, which they said will aim to ensure the best offer for the group in order to benefit stakeholders and “maximise value” for creditors. 

Dr Claire Royston, Group Medical Director of Four Seasons Health Care, said yesterday: “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.”

However, while a spokesperson reiterated to Express that care home residents would not experience any changes in the immediate future, as the operating companies had “ample liquidity”, they were unable to provide assurances for the long-term. 

FSCH, which is owned by Guernsey resident Tim Hammond, will launch its sales process on 3 May. The period of restructuring is expected to conclude at the end of this year. 

Pictured: FSHC is one of Britain's largest care groups.

Alvarez and Marsal Europe LLP, have been appointed as Joint Administrators to the debt-carrying holding companies, Elli Investments and Elli Finance.

Richard Fleming, joint administrator the companies, commented: “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.”