Hantona and Warwick Park House - Case Update

The administrators of three care homes have managed to secure a deal with the bank that will see all staff who stayed on to care for residents paid in full, despite the closure of the homes.

Tom Grummitt and Andrew Smith of Bridgewood were appointed as joint administrators of Hantona, which operates The Old Rectory in Swanage and Delph House in Poole, and Warwick Park House, which runs the Warwick Park Care Home in Plymouth, on 17 January. The appointment followed an announcement by management of the three homes that they planned to cease trading due to financial difficulties.

By that time, some residents had already left and some local authorities had terminated their contracts. Taking this and the financial position of the homes into account, the joint administrators determined that they would be unable to continue to trade the homes and sell them as a going concern, so their priority was to ensure the safe relocation of the remaining residents.

113 staff stayed on to maintain resident care and support the relocations, which was completed within 14 days of the appointment, at which time staff were made redundant. Unfortunately, the timing of the closures meant that staff were not entitled to be paid as an expense of the administrations and would rank as unsecured creditors.

As a result, in an unusual move, the administrators approached the bank, which agreed to cover the wage bill of around £73,000, meaning all employee wages will be paid in full.