£50m-turnover healthcare group on brink of administration

Transform Hospital Group operates from The Pines in south Manchester

Transform Hospital Group is on the brink of administration just weeks after new owners took over the healthcare group.

Transform employs 330 people at two hospitals and 11 clinics across the UK providing cosmetic and weight loss surgery.

Y1 Capital, which is led by Sayani Sainudeen and former Transform chief executive Tony Veverka, completed a deal for the company in August which saw previous private equity owner Aurelius exit.

The deal closed on August 15 but just seven weeks later the business has filed a notice of intention to appoint administrators, TheBusinessDesk.com can exclusively reveal.

A spokesperson for Transform said it was “a sensible and pragmatic measure while we consider a number of restructuring options”.

The notice of intention provides a 10-day moratorium from other creditor action and is designed to give a business the opportunity to find a way to prevent entering administration.

The group is headquartered in Manchester and operates from two hospitals – The Pines in south Manchester and Burcot Hall in Bromsgrove, near Birmingham. Its clinics are spread nationwide from Glasgow to Exeter, including Leeds, Nottingham and London.

Transform was founded in 1974 as a hair treatment business before expanding, and following its merger with The Hospital Group in 2016 it now generates £50m a year.

It made a loss of £8.3m in 2019 after a significant restructuring before Covid disrupted the business further.

However it was able to support the NHS in the early stages of the pandemic and the period was used to reposition the business as a “broader-based healthcare and wellbeing provider”.

Transform previously went into administration in 2015, which resulted in European investor Aurelius buying the business.