Insolvency practitioner SFP has completed a sale of the business and assets of South Yorkshire Care Ltd, which provided care for elderly and vulnerable residents and went into administration after falling into arrears with HMRC, safeguarding 100 jobs and the future of the homes
The company began trading in 2009 and had four care homes, two in Grimsby and others in Harrogate and Lincoln. Despite turning over more than £1.5m in 2016, the company ran into arrears with HMRC which led to a company voluntary arrangement (CVA) being implemented.
When South Yorkshire Care could not meet the terms of the CVA, a pre-pack sale was pursued via administration, with SFP directors Simon Plant and Daniel Plant appointed joint administrators. Following an initial review of the business, the joint administrators conducted a valuation of the care homes, marketed them and subsequently looked to carry out a pre-pack sale without business interruption, to ensure the safety of the residents.
Simon Plant, SFP director and joint administrator, said: ‘After marketing the business widely, offers were received from four associated businesses, each looking to acquire the business of each of the care homes. Restructuring in this way should provide improved security for each home, having the finances ring-fenced per unit.
‘Thankfully we have been able to keep the business trading which has meant the level of care for residents has not been affected and all employees have kept their jobs.’
Report by Pat Sweet
