Four seasons care homes up for sale

Wilmslow based Four Seasons, one of the biggest care home operators in the country, has been put on the market by its owner US Hedge fund H/2 Capital Partners amid a mountain of debt.

Senior members of the management team have been ousted – Ben Taberner, Claire Royston and Tim Hammond – Four Seasons’ finance chief, medical director and chief executive – have been removed from the board but remain in place to carry out day-to-day duties.

The move has thrown the future of 17,000 residents and 343 homes into serious doubt.

The imminent sale was announced after the firm, which is still nominally owned by Guy Hands’ private equity vehicle Terra Firma, failed to pay off a portion of its debt owed to H/2.

As principal creditor the American Hedge Fund has final say on the future of the business.

Four Seasons said: “These changes have been made in furtherance of an independent sales process and facilitate such a process taking place.

“A transparent arm’s length sales process for the sale of all or substantially all of the assets of the group” is under way.”

Four Season has been hit by cuts in local authority fees, risings costs and the introduction of the national living wage and has struggled for a number of years.

Four Seasons is saddled with £500m debts which are controlled by H/2 and other bondholders.

The company has insisted that there will be no impact on the day-to-day running of homes as a result of the sale.

Editor: whilst the news of the increase in minimum wage will be welcomed in many quarters it will have a massive impact on companies operating on the edge of profitability – such as care homes, restaurant chains and retail, etc. Many care homes are wholly dependent on financial support for residents from local councils, if the councils decline to increase funding, the homes could become unviable and be forced to close.