Overview:
Exigen Group completed the sale of South Yorkshire Care Limited, ensuring essential care for elderly and vulnerable residents continued without interruption, and securing the employment of all 101 staff. The company operated four care homes in Harrogate, Lincoln, and Grimsby.
Financial Challenges:
Despite a turnover of £1.5 million in 2016, arrears with HMRC led to a CVA. When the CVA could not be met, a pre-pack sale via Administration was pursued to protect residents and staff. Simon and Daniel Plant of Exigen Group were appointed Joint Administrators on 1 September 2017, with the sale completing simultaneously.
Administrator Comments:
Simon Plant 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. Any such business that finds itself in a similar situation should consult specialist advisors before it is too late. 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.”
Outcome:
Exigen Group’s involvement demonstrates how structured Administration and pre-pack sales can protect vulnerable residents, preserve employment, and ensure continuity of care while achieving positive outcomes for stakeholders.