Four care homes enter administration after failed lease

Wed, 30 May 2018 | ADMINISTRATION

Four care homes have been taken over by administrators following a breakdown in negotiations between their owner and a property agent.

Orchard Homes, which owns several care homes around the country, has been forced to call in administrators at BDO to manage operations at four of its locations: St Georges Hall & Lodge in Darlington, Haslingden Hall & Lodge in Rossendale, Norton Lees near Sheffield and Chorley Lodge in Chorley.

Haslingden Hall & Lodge alone houses 69 elderly residents and provides specialist dementia care services to many of them.

According to Orchard Homes’ CEO, Tom Brookes, difficult trading conditions meant the firm was unable to agree new lease terms for the four properties with Holly Blue Management Company.

Brookes added: “We have been negotiating new leases with four landlords for the past 11 months in order to ensure our leaseholds are sustainable.

“While we have reached agreement with three of the four, we have failed to agree terms with Holly Blue Management Company.”

The day-to-day management of the homes has been taken on by Lucina Care, a subsidiary of Careport, though BDO are accepting offers to buy the businesses as going concerns. In the interim they will continue trading as normal and all employees will be retained.

BDO’s Sarah Raynment, business restructuring partner, said that her team will work closely with Lucina Care, alongside local authorities and the Care Quality Commission, to ensure that standards remain up to scratch.

She added: “However, we are confident of securing a going concern sale and safeguarding the long-term future of the homes for all residents.

“The home will continue to operate whilst this is explored, and our primary focus is to ensure the maintenance of high quality care to residents.

“We will continue to work closely with all parties, including specialist care management company Lucina Care Limited, to ensure residents experience no interruption to their care services.”


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