We helped a large care company with the administration of one of its subsidiary companies which owned two care homes and faced the threat of a winding up petition from HMRC. The parent company wanted to close one of the subsidiary’s non-profitable homes and then acquire its remaining assets through a pre-pack administration.
Firstly, the parent company’s corporate structure meant it was unclear who was the legal employer of those staff being made redundant. We had to urgently advise on the company’s liabilities and assist with group and individual consultations.
Secondly, we considered several wider issues relating to the transaction. These included how the impending closure should be managed with the local authority who had placed most of the residents in the home, as these residents would need to be reallocated before the administrator could be appointed.
Lastly, one resident’s family reported the closure to a journalist at a national newspaper. We helped the client to swiftly diffuse the situation which meant the story was no longer attractive, protecting the care company’s reputation.