Concerns rise for residents after Four Seasons’ decision to withdraw rent


Concerns have been raised over the future of thousands of care home residents following a row over Four Seasons’ decision to withdraw rent as part of renegotiations with landlords.

The decision this month affected the landlords of 135 leasehold homes not included in a proposed deal to sell 185 freehold sites to Four Seasons’ largest creditor, H/2 Capital (see H/2 Capital closes in on £400m Four Seasons rescue deal, report).

Following the move, one landlord told the FT they were considering other leasing options, including holding takeover discussions with other operators, or also potentially issuing notice to the tenants and leaving local authorities to find alternative accommodation for residents.

Four Seasons has made over £100m in rental payments to landlords over the last two years.

A Four Seasons spokesperson said: “Continuity of care has been and remains our priority throughout this process. The decision to withdraw rent payments is part of the lease negotiations which we announced recently. We are actively engaging with landlords and we are confident that we will reach an agreement that will put the Group into a more sustainable financial position for the long term. In turn, this will deliver a more sustainable return for landlords.

“It is important to emphasise that this renegotiation is not prompting changes for any of our care homes, the people in their care, their employees or suppliers due to the funding we have in place.  All other running costs, including payment to suppliers and employees, continue to be paid as normal and the Administrators remain in discussions in relation to the restructuring and independent sales process with a view to completing the process by the end of the year.”

The post Concerns rise for residents after Four Seasons’ decision to withdraw rent appeared first on Care Home Professional.


Source link