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GMB Warn on Four Seasons

Friday 30th September 2011

 

OF THE 288 SOUTHERN CROSS CARE HOMES TRANSFERRED TODAY THE  57 GOING TO FOUR SEASONS HEALTHCARE ARE “jumping from the frying pan into the fire SAYS GMB

 

The Care Quality Commission must establish how Four Seasons can pay debts of £750m due to be repaid next September from assets of £350m as Four Seasons have to use income meant to care for the residents to pay interests on these enormous debts.

 

Four Seasons Healthcare are taking over 57 of the Southern Cross care homes being transferred today in wave one of the transfer of all the homes to over 30 new operators. In total 145 Southern Cross care homes will transfer to Four Seasons Healthcare. GMB the union for staff at these homes say that this is like “jumping from the frying pan into the fire” as Four Seasons Healthcare is saddled with debts of £790m and has no other income except money to care for residents to pay them.  See notes to editors 2 for list of homes due to be transferred with a tick for those transferring today.

 

GMB  has called on  the Care Quality Commission (CQC) investigate this transfer to establish how Four Seasons Healthcare has the financial stability to avoid being the ‘Son of Southern Cross’.

 

Four Seasons Healthcare is from the same private equity background as Southern Cross which is due to go into administration at the end of October 2011.Four Seasons Healthcare owes debts of £790 million which are due to be repaid in September 2012 and has net assets of £350 million.

 

Four Seasons Healthcare currently operate over 420 care centres and nursing homes accommodating 17,500 people and employing over 21,000 staff. In 2008 there was a debt for equity swap as the then owners QIA walked away. Royal Bank of Scotland took a stake just under 40% and wrote off £300m in loans. Overall, 30 lenders cut debts by over half to £780m which saved it from collapse. See notes to editors 1 for time line. Four Seasons holding company is registered off-shore in the Cayman Islands and in Guernsey.

 

Justin Bowden GMB National Officer said, “The Care Quality Commission must establish how Four Seasons can pay debts of £750m due to be repaid next September from assets of £350m. Four Seasons have to use income from residents and local councils meant to care for the residents to pay interests on these enormous debts.

 

The only apparent option for Four Seasons to pay back the £750m is to use public money meant to care for the elderly. This is totally unacceptable. Councils must ensure taxpayers funds are not used to prop Four Seasons or any other financially unstable care home operator.

 

We must warn families that the scene is set for Four Seasons Healthcare, and some other operators, to go the way of Southern Cross.

 

The Labour Movement must defend the thousands of residents in care who have worked for and served this country all their lives. If not, then history will repeat itself.  If Southern Cross was the original motion picture, Four Seasons are the sequel, and they’re coming soon to a town near you.”

 

Ends

Contact: Justin Bowden GMB National Officer on 07710 631 351 or GMB officers in regions: Paul Maloney South East and South West on 07801 343 839 or Amanda Gearing in t Midland on 07957 265 678,or Barry Fletcher in Scotland on 07921 885775 or Sue Hill in Yorkshire 07958 156833 or Kelly Andrews in Wales and Avon on 07980 753 131 or Shaun Graham in London and Eastern on  07885 706 556, or Martin McGinley in East Midlands on 07977 161 305, or Karen Atkinson in North West on 07740 8040 51 or Suzanne Reid in Northern Region on 07870 176 728 or Eamonn Coy in  Northern Ireland on 07968 109 355.

Notes to Editors:

 

1         Timeline on Four Seasons Healthcare

 

·          1989 - Established by Scottish businessman, Robert Kilgour. His first care home launched in Kirkcaldy’s former Station Hotel

·          1997 - Joined forces with Hamilton Anstead, MD of Takare PLC

·          July 1999 –Alchemy Partners, headed by Jon Moulton, built the group with the acquisition of CrestaCare and Four Seasons Health Care. The deal was worth £133m in total with Alchemy providing £44.5m. Robert Kilgour left the company and Hamilton Anstead remained as sole Chief Executive.

·          2001 – Alchemy provided additional £5.4m to acquire additional care homes.

·          2002 – Alchemy provided additional £25m to enable acquisition of Omega Worldwide and Principal Healthcare

·          August 2004 – Sold (through Goldman Sachs) to Allianz Capital Partners (advised by Dresdner Kleinwort Wasserstein) for £775m, significant gain with IRR of 41% and a multiplier of 4.3x. This deal saw 10 senior employees of Four Seasons get £30m. Alchemy made £200m

·          2005 - Hamilton Anstead left the business, Tony Heywood, former boss of Westminster Healthcare becomes Chief Executive

·          September 2006 – Sold to a Delta Commercial Property, an investment vehicle for Three Delta and backed by the Qatar Investment Authority, for £1.47bn, with £1.3bn of debt and £100m of equity.

·          2007 - Dr Peter Calveley appointed Chief Executive

·          2008 – £1.24bn of senior debt due on 2 September 2008. The QIA, unable to refinance the debt, write of the value of its equity holding (£100m), effectively walking away. The banks that lent the money wrote off £800m. Hardest hit was RBS who led the consortium of 30 lenders who swapped the debt for a stake in Four Seasons. Others included Nationwide, Fortis, Credit Suisse, Marathon Asset Management, Cheyne Capital, Morgan Stanley, Goldman Sachs. Hatfield Philips International acted as adviser to all of the lenders. One Bondholder is Ignis, the investment management division of Hugh Osmond’s Pearl.

·          December 2009 – Financial Restructuring agreed to swap debt for equity. Deutsche Bank. Entire share capital of parent company, Fino Propco Holdco Ltd was acquired by FSHC (Guernsey) Holdings Ltd via a direct Jersey subsidiary FSHC (Jersey) Holdings Ltd.

·          Currently £750m in debt, occupancy rate close to 90% (according to The Observer), a 2009 report by Four Seasons states £790m of debt and occupancy rate of 87.4%. RBS and funds in which RBS participates are the largest shareholder with about 38% of the group.

2                     List of Southern Cross care homes due to be taken over by Four Seasons Healthcare.

Home Name

Home Address

Local Authority

Wave 1 transfer

North East

     

Hallgarth N&R

Hallgarth Street, Durham, County Durham, DH1 3AY

Durham

ü

Langley Park

Front Street, Langley Park, Durham, County Durham, DH7 9YY

Durham

 

St Helens

6 Manor Road, St Helens, Bishop Auckland, County Durham, DL14 9DL

Durham

 

Durban House

Durban Street, Blyth, Northumberland, NE24 1PN

Northumberland

ü

Sunningdale House

Dean Road, Hexham, Northumberland, NE46 1HW

Northumberland

 

Sunningdale Lodge

Dean Road, Hexham, Northumberland, NE46 1HW

Northumberland

 

Wansbeck

Church Avenue, West Sleekburn, Choppington, Northumberland, NE62 5XE

Northumberland

 

Stapleton House

32 Borough Road, Jarrow, Tyne & Wear, NE32 5XW

South Tyneside

ü

Elizabeth Fleming

(off Market Street) Hetton-le-Hole, Tyne & Wear, DH5 9DY

Sunderland

 

       

North West

     

Half Acre

Higher Ainsworth Road, Radcliffe , Manchester, M26 4JH

Bury

 

Regency (Parklands)

140 Lily Hill Street, Whitefield, Manchester, M45 7SG

Bury

 

Cypress Court

Broad Street, Crewe, Cheshire, CW1 3DH

Cheshire East

ü

Aarondale

Sunny Brow, Off Chapel Lane, Coppull, Chorley, Lancashire, PR7 4PF

Lancashire

 

Brierfield House

Hardy Avenue, Brierfield, Nelson, Lancashire, BB9 5RN

Lancashire

 

Highfield Hall

Grane Road, Haslingden, Rossendale, Lancashire, BB4 5ES

Lancashire

 

Hill View

Hurst Lane, (off Cranshaw Street) Rawtenstall, Rossendale, Lancashire, BB4 7RA

Lancashire

 

Priory Park

Priory Cresent, Penwotham, Preston, Lancashire, PR1  0AL

Lancashire

 

Garden Lodge

Middlemas Hey, Netherley, Liverpool, Merseyside, L27 7AR

Liverpool

ü

Maple Lodge

Arncliffe Road, Liverpool, Merseyside, L25 9PA

Liverpool

ü

Oakland (Moston)

134 Kenyon Lane, Moston, Manchester, M40 9DH

Manchester

 

Heywood Court

Green Lane, Heywood, Rochdale, Lancashire, OL10 1NQ

Rochdale

 

Hulton Care (Middleton)

Clarke's Brow, Middleton, Manchester, M24 6BW

Rochdale

 

Broughton Court (Parklands)

67 Broom Lane, Salford, Manchester, M7 4FF

Salford

ü

Holly Court

8 Priory Grove, Off Lower Broughton Road, Salford, Manchester, M7 2HT

Salford

 

Laburnum Court

8 Priory Grove, Off Lower Broughton Road, Salford , Manchester, M7 2HT

Salford

 

Downshaw Lodge

Downshaw Road, Ashton-under-Lyne, Lancashire, OL7 9QL

Tameside

ü

Jonathan Grange

Micklehurst Road, Mossley, Ashton-under-Lyne, Lancashire, OL5 9JL

Tameside

 

St Oswalds House

12 Golborne Road, Winwick, Warrington, Cheshire, WA2 8SZ

Warrington

ü

Bebington

165 Heath Road, Bebington, Wirral, Merseyside, CH63 2HB

Wirral

ü

Edgeworth House (Church Road)

Church Road, Bebington, Wirral, CH63 3DZ

Wirral

 

Highground

7 Waterford Road, Oxton, Birkenhead, Wirral, CH43 6US

Wirral

ü

       

Yorkshire & The Humber

     

Amethyst House (Old Rossington)

Sheep Bridge Lane, Old Rossington, Doncaster, South Yorkshire, DN11 0EZ

Doncaster

 

Hesslewood

Ferriby Road, Hessle, East Yorkshire, HU13 0JB

East Riding of Yorkshire

ü

Botham Hall

Botham Hall Road, Milnsbridge, Huddersfield, West Yorkshire, HD3 4RJ

Kirklees

 

Hartwell

117 Jumble Lane, Ecclesfield, Sheffield, South Yorkshire, S35 9XJ

Sheffield

 

Stocksbridge

2a Haywood Lane, Stocksbridge, Sheffield, South Yorkshire,  S36 2QE

Sheffield

 

The Lodge

Bridge Street, Killamarsh, Sheffield, South Yorkshire, S21 1AL

Sheffield

 

Hemsworth Park

Wakefield Road, Kinsley, Wakefield, West Yorkshire, WF9 5EA

Wakefield

ü

Amelia House

Manor Lane, Rawcliffe, York, YO30 5UA

York

ü

       

East Midlands

     

Kilburn (R&N)

Dale Park Avenue, Kilburn, Belper, Derbyshire, DE56 0PR

Derbyshire

 

The Cedars / The Larches

16 Queens Drive, Ilkeston, Derbyshire, DE7 5GR

Derbyshire

ü

Brimington

73 Manor Road, Brimington, Chesterfield, Derbyshire, S43 1NN

Derbyshire

 

The Heights

Ankerbold Road, Old Tupton, Chesterfield, Derbyshire, S42 6BX

Derbyshire

 

The Vale

Castle Lane, Bolsover, Chesterfield, Derbyshire, S44 6PS

Derbyshire

 

Whittington

40 Holland Road, Old Whittington, Chesterfield, Derbyshire, S41 9HF

Derbyshire

 

The Willows

14 The Lant, Shepshed, Leicestershire, LE12 9PD

Leicestershire

ü

Woodview

127 Lincoln Road, Branston, Lincoln, Lincolnshire, LN4 1NT

Lincolnshire

ü

Greenfields (Alton Centre/Arkwright)

290 Station Road, Irchester, Northamptonshire, NN29 7EY

Northamptonshire

 

Charnwood Court

24 Station Road, Carlton, Nottingham, Nottinghamshire, NG4 3AX

Nottinghamshire

ü

Churchfield

Off Churchfield Drive, Rainworth, Mansfield, Nottinghamshire, NG21 0BJ

Nottinghamshire

 

Portland House / Hemsley House

113 & 146 Portland Road, Nottingham, Nottinghamshire, NG7 4HE

Nottinghamshire

ü

The Oaks

172 London Road, Balderton, Newark, Nottinghamshire, NG24 3JF

Nottinghamshire

ü

The Old Vicarage

Newcastle Avenue, Worksop, Nottinghamshire,  S80 1NJ

Nottinghamshire

 

The Sycamores / The Poplars

High Street, Warsop, Nottinghamshire, NG20 0AA

Nottinghamshire

ü

Tudor Grange

54 Main Road, Radcliffe-on-Trent, Nottinghamshire, NG12 2BP

Nottinghamshire

ü

Westwolds

4 Park Avenue, Burton Joyce, Nottingham, Nottinghamshire, NG14 5AF

Nottinghamshire

ü

       

West Midlands

     

Beeton Grange

50-55 Beeton Road, Winson Green, Birmingham, West Midlands, B18 4QD

Birmingham

ü

Heath House

81 Walkers Heath Road, Kings Norton, Birmingham, B38 0AN

Birmingham

ü

Millwater

164-168 Waterloo Road, Hay Mills, Yardley, Birmingham, B25 8LD

Birmingham

ü

Oaklands

4 Oakland Road, Moseley, Birmingham, West Midlands, B13 9DN

Birmingham

ü

Selly Park

95A Oakfield Road, Selly Park, Birmingham, West Midlands, B29 7HW

Birmingham

ü

The Royd

27 Selbourne Road, Handsworth Wood, Birmingham, West Midlands, B20 2DN

Birmingham

ü

Keresley Wood

Tamworth Road, Keresley, Coventry, Warwickshire, CV7 8JG

Coventry

 

Milverton Gate (Stoke Lodge)

Dawson Road (off Aldermoor Lane), Stoke, Coventry, West Midlands, CV3 1FU

Coventry

 

Ashbourne

Lightwood Road, Dudley, West Midlands, DY1 2RS

Dudley

 

Holbeche House

Wolverhampton Road, Wall Heath, Kingswinford, West Midlands, DY6 7DA

Dudley

 

Riverside (Kerry Hill)

Wolverhampton Road, Wall Heath, Kingswinford, West Midlands, DY6 7DA

Dudley

 

Wyncroft House

16 Moss Grove, Kingswinford, West Midlands, DY6 9HU

Dudley

ü

The Gables

1595 Wolverhampton Road, Oldbury, West Midlands, B69 2BJ

Sandwell

ü

Haunton Hall (Tamworth)

Haunton, Nr Tamworth, Staffordshire, B79 9HW

Staffordshire

 

Hornegarth House

204 Walsall Raod, Great Wyrley, Walsall, Staffordshire, WS6 6NQ

Staffordshire

 

Park Lane

Park Lane, Knypersley, Stoke-on-Trent, Staffordshire, ST8 7BG

Stoke on Trent

ü

Westfield Lodge

Weston Coyney Road, Weston Coyney, Stoke-on-Trent, Staffordshire, ST3 6ES

Stoke on Trent

ü

Fernwood Court (Churchill Crt)

300-310 Wolverhampton Road West, Bentley, Walsall, West Midlands, WS2 0DS

Walsall

 

Rushall

204 Lichfield Road, Rushall, Walsall, West Midlands, WS4 1SA

Walsall

ü

Rugby

53 Clifton Road, Rugby, Warwickshire, CV21 3QE

Warwickshire

ü

       

Eastern

     

Kirby House

135 West Street, Dunstable, Bedfordshire, LU6 1SG

Bedfordshire

 

Swiss Cottage

Plantation Road, Leighton Buzzard, Bedfordshire, LU7 3HU

Bedfordshire

ü

Friday House

141 March Road, Friday Bridge, Wisbeck, Cambridgeshire, PE14 0LP

Cambridgeshire

ü

Midfield Lodge

Cambridge Road, Oakington, Cambridgeshire, CB4 5BG

Cambridgeshire

ü

Broome End (Pine End)

Pines Hill, Stansted Mountfitchet, Essex, CM24 8EX

Essex

 

Hopes Green

16 Brook Road, South Benfleet, Essex, SS7 5JA

Essex

ü

Ladyville Lodge

Fen Lane, North Ockendon, Upminster, Essex, RM14 3PR

Essex

 

Romford Grange

144 Collier Row Lame, Romford, Essex, RM5 3DU

Essex

 

Alexandra Care

46 Alexandra Road, Hemel Hempstead, Hertfordshire, HP2 5BP

Hertfordshire

 

St Germans House / Abbotsford

14 Lynn Road, St Germans, Kings Lynn, Norfok, PE34 3DW

Norfolk

ü

Barleycombe

Sudbury Road, Long Melford, Sudbury, Suffolk, CO10 9HE

Suffolk

ü

       

London

     

Sunbridge

108 Hickory Close, Edmonton, Enfield, London, N9 7PZ

LB Enfield

ü

Cedar Court

138 Lensbury Way, Abbey Wood, London,  SE2 9TA

LB Greenwich

ü

Marlborough Court

7 Copperfield Road, Thamesmead, London, SE28 8RB

LB Greenwich

ü

Burgess Park

Picton Street, Camberwell, London, SE5 7QH

LB Southwark

ü

       

South East

     

Ashbourne Court

Salisbury Road, Andover, Hampshire, SP10 2JJ

Andover

ü

Bon Accord

79-81 New Church Road, Hove, East Sussex, BN3 4BB

Brighton & Hove

ü

Chiltern Court

Aylesbury Road, Wendover, Buckinghamshire, HP22 6BD

Buckinghamshire

ü

Coombe Lodge

Nash Lee End, Wendover, Buckinghamshire, HP22 6BD

Buckinghamshire

ü

Woodcot Lodge

12 Rowner Road, Gosport, Hampshire, PO13 0EW

Hampshire

ü

Copper Beeches

5 Sylewood Close, Borstal, Rochester, Kent, ME1 3LL

Medway

ü

Longlands

Pound Lane, Cassington, Oxon, Oxfordshire, OX29 4BN

Oxfordshire

ü

Mill House

30 Bridge Street, Witney, Oxon , Oxfordshire, OX28 1HY

Oxfordshire

ü

The Albany

7 London Road, Headington, Oxford, Oxfordshire, OX3 7SN

Oxfordshire

 

The Crown

High Street, Harwell, Oxon, Oxfordshire, OX11 0EX

Oxfordshire

 

The Triangle

Old London Road, Wheatley, Oxon, Oxfordshire, OX33 1XW

Oxfordshire

ü

Hungerford

Wantage Road, Hungerford New Town, Berkshire, RG17 0PN

West Berkshire

ü

Murdoch House

1 Murdoch Road, Wokingham, Berkshire, RG40 2DL

Wokingham

ü

Woodbury House

Jouldings Lane, Farley Hill, Berkshire, RG7 1UR

Wokingham

ü

       

South West

     

Kingswood

Wotton Road, Kingswood, Wotton-under-Edge, Gloucestershire, GL12 8RA

Gloucestershire

 

Revelstoke Lodge (Boringdon Road)

Boringdon Road, Colebrook, Plymton, Devon, PL7 4DZ

Plymouth

 

 

 

 

 

Wales

 

 

 

Red Rose

Park Road, Garden City, Ebbw Vale, Gwent, NP23 6UP

Blaenau Gwent

 

The Rookery

Queen Square, The Crescent, Ebbw Vale, Gwent,  NP23 6EF

Blaenau Gwent

 

Bargoed

Heol Fargoed, Bargoed, Mid Glamorgan, CF81 8PQ

Caerphilly

 

Valley View

Dan-y-coed, Cefn Hengoed, Caerphilly, CF82 7LP

Caerphilly

 

Ty Hafod

Llantrisant Road, Capel Llanilltern, Cardiff, CF5 6JR

Cardiff

 

Sedbury Park

Sedbury, Chepstow, Monmouthshire, NP16 7EY

Monmouthshire

 

Ty Eiren (Gelli Seren)

Parceiren, Thomastown, Tonyrefail, Porth, Mid Glamorgan, CF39 8EE

Rhondda Cynon Taff

 

Ty Gwynno (Ty Marw Parc)

Hafod Lane, Hopkinstown, Pontypridd, Mid Glamorgan, CF37 2SD

Rhondda Cynon Taff

 

       

Scotland

     

Banks O'Dee

Abbotswell Road, Tullos, Aberdeen, Aberdeenshire, AB12 3AB

Aberdeen City

 

Bucksburn

Kepplehills Road, Newhills, Bucksburn, Aberdeen, Aberdeenshire, AB21 9SQ

Aberdeen City

 

Devanha Gardens

9 Polmiur Road, Aberdeen, Aberdeenshire, AB11 7SP

Aberdeen City

 

Maryfield East

9 Fonthill Road, Aberdeen, Aberdeenshire, AB11 6UN

Aberdeen City

 

Maryfield West

31 Queens Road, Aberdeen, Aberdeenshire, AB15 4ZN

Aberdeen City

 

Eastleigh

110 North Deeside Road, Peterculter, Aberdeen, Aberdeenshire, AB14 0QB

Aberdeenshire

 

Adam House

91c High Street, Dysart, Kirkcaldy, Fife, KY1 2UQ

Fife

 

Burlington Court

3 Stepps Road, Glasgow, Lanarkshire, G33 3NQ

Glasgow

 

Clarence Court

234 Crow Road, Broomhill, Glasgow, G11 7PD

Glasgow

 

Abbeycourt

Blackhall Street, Paisley, Glasgow, PA1 1TN

Renfrewshire

 

Clyde Court

1 South Avenue, Clydebank, Glasgow, G81 2RW

West Dumbartonshire

 

       

Northern Ireland

     

The Court (Ballymoney)

1A Queens Avenue, Ballymoney, Co Antrim, BT53 6DF

Antrim

 

Castle Lodge (Orchard Manor)

7-9 Fennel Road, Antrim, Co Antrim, BT41 4PB

Antrim

 

Pond Park

2 Derriaghy Road, Lisburn, Co Antrim, BT28 3SF

Antrim

 

Rosemary Lodge

9 Fennel Road, Antrim, Co Antrim, BT41 4PB

Antrim

 

The Model (Megaw Park)

1 Portrush Road, Ballymoney, Co Antrim, BT53 6BX

Antrim

 

Dunlarg

224 Armagh Road, Keady, Co Armagh, BT60 3EW

Armagh

 

Ardmaine

Fullerton Road, Newry, Co Down, BT34 2AY

Down

 

Longfield

2 Longfield Road, Eglinton, Co Londonderry, BT47 3PY

Londonderry

 

Nightingale CC

34 Old Eglish Road, Dungannon, County Tyrone, BT71 7PA

Tyrone

 

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