In worrying news for the 17,000 residents of nursing homes provided by Four Season Health Care it has been announced that 2 of the holding companies ( Elli Finance (UK) and Elli Investments) have gone into administration, weighed down by £525m of debts.
It should be noted that the operation companies are not in administration and have secured funding to continue to trade. The company has said that there will be no effect on the staff or residents. The operational company employs 20,000 staff across 322 care facilities.
A number of care businesses have run into trouble recently, raising questions about the current funding model for social care.
Last year, Allied Healthcare, which supports 13,000 people, said it was struggling with debts, blaming low fees paid by councils.
Back in 2011 Southern Cross collapsed and residents had to be relocated in some cases.