Properties belonging to insolvent Choices Care have been put up for sale to help retire debts of more than £35m.
Administrator Zolfo Cooper has instructed Christie & Co to value the seven buildings Choices Care owns, in its portfolio of 26 care homes.
Two of these have already been marketed for sale; the remainder are intended to be transferred to a buyer if one is found for the Scottish care homes operator.
Gloucester-based Mears Group purchased the group’s supported-living arm for £7.4m, but Choices Care’s registered services division, which comprises 26 properties, is still trading through administration.
Choices Care had experienced cash flow problems dating to early 2010, and on 19 April this year Barclays Bank liaised with Zolfo Cooper and the company to protect its position. It was concluded that some assets should be sold.
While some contracts were exchanged, the group came under creditor pressure, and was handed a warning letter one month later on behalf of HMRC.
The firm was not able to pay its liabilities, and entered administration on 3 August, at which time it posted a £35.4m deficiency.
Barclays is expected to get the £7.1m it is owed, but unsecured creditors are unlikely to get dividends, according to the statement of administrator’s proposals filed at Companies House.
joanna.bourke@estatesgazette.com
