Care home firm not in money trouble, says report

A GROUP which represents council social care departments has moved to reassure residents of Four Seasons care homes that the company is not in financial trouble.

The firm took over seven Derbyshire care homes from cash-strapped Southern Cross last year but it has confirmed that it has major debts, totalling £780 million.

The GMB union has said the company is in a “very vulnerable” position.

But The Association of Directors of Adult Social Services has issued the results of a study on the viability of the business which showed the firm should be able to deal with its debt.

ADASS president Peter Hay said the association’s analysis showed the company had “solid revenues”, and occupancy rates that are higher than average for the industry.

He said that the debt “ought to be managed in an appropriate and satisfactory manner before the end of this year”.

Mr Hay praised Four Seasons for the way it had helped ADASS complete its report. He said: “Four Seasons have been fully transparent with our analysts.

“They have made all relevant figures available and have posted them on their website for all to read.”

The GMB previously said the Four Seasons situation was “reminiscent” of what happened with Southern Cross which, in May last year, announced it was running at a £311 million half-year loss.

By July, it had announced that the landlords of the homes it ran would take them over and would run them or find another operator.

The matter caused anxiety for residents and their families across the country, where Southern Cross had 752 homes, including 17 in Derbyshire.

Of those 17, Four Seasons took over seven, including The Cedars and Larches, in Queens Drive, Ilkeston, and Kilburn Care Home, Kilburn.

The others were in Brimington, Chesterfield, Killamarsh and Bolsover.