Tuesday, July 14, 2009

The UK Care market in crisis

Four Seasons is one of the UK’s largest providers of care for older people (15,000 people in 400 locations).

The company is also a high profile examples of what goes wrong when valuations plunge and the high levels of debt can not be refunded.

At the last minute it looks as if it has staved off going into administration but only at the cost of wiping out many of the creditors. There are a lot of companies in Four Season’s position.

The vulture funds are out there waiting to pounce and pick-up cheap assets. I don’t reckon they will have that much longer to wait.

I wonder if the Government authorities realise that a large part of the UK Care Industry is in such a precarious financial position and that this will undoubtedly be having a negative impact on the quality of care provided. Perhaps they don’t care? Dick Stroud

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