The Care homes giant Four Seasons is now on the verge of facing the administration, due to its collapsed business model that has raised fears for a number of elderly residents dependent on this housing board. Housing about 17000 beds across 322 homes in its service region, the company board has now appointed the corporate undertakers at Alvarez & Marshal to carry out the further process following the failed negotiations on the reconstruction projects that it had undertaken. However, the firm has insisted that no staff would be sacked in this rough phase or the residents be moved out by closing their respective home.
Four Seasons quoted the media by saying that the operating companies under which the care homes hospital and home operations sit are not subjected to the administrative actions and hence would continue running under the conventional radar of the existing leadership teams. The collapse of the Care homes giant would be one of the biggest since 2011 and H2 Capital Partners, the primary shareholder of Four Seasons is currently struggling under a whopping debt of 525 million pounds, for which it has ordered the sale of the crisis-hit company. However, weeks ago, the giant confirmed that it has sufficient enough operating liquidity to complete the sale process.
Currently, A&M is planning the strategy to sell the group out of the administration radar. Dr. Claire Royston, group medical director of Four Seasons, quoted to the media that this rough patch at the top level of the giant would in no way hamper the employees or residents associated with it and hence all of the operations would undergo the normal route. The priority of Four Seasons still remains to be delivering the top-notch quality of elderly care and the recent restructuring would open the avenues for an orderly and independent sales process.
This failure of Four Seasons has however affected the private equity vehicle Terra Firma that had bought it back in 2012 at the worth of 825 million pounds. Now the former has been bound to give out about 450 million pounds write-down on its investment and this has caused the piling up of a series of acute worries and tensions on the financial performance and debt pile up of the past several years.
The current situation has affected the local authority fees, increased the overall costs and introduced the new concept of a national living wage, thus putting the long-term stability of the giant under huge jeopardy. Within these clouds of doubts and despair for the giant, Richard Fleming of A&M has ensured that it has now committed on ensuring that the group continues to deliver upon its qualitative care activities whilst the sales process would run independently and the main focus would be on improving the quality ratings of the care homes and hospitals to mitigate the tough times and keep the business model thriving.
The group’s fundamental layout is still quite strong and the fine line of distinction between the services and sales procedure would surely enhance its operations to at least thrive out.
