Large healthcare provider plans CVA to ward off collapse
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Allied Healthcare, which provides care to 13,500 people across the UK, has put forward a company voluntary arrangement (CVA) as it looks to stave off collapse.
It said its plans “will not impact on the safe continuity of care that Allied Healthcare provides across the UK” and would not result in job losses or branch closures.
It has 150 contracts with local authorities in the UK, a part of the market which has come under increasing pressure in recent years as margins have been squeezed.
In a statement, Allied Healthcare said: “As with many independent providers in the UK health and social care sector, Allied Healthcare has been operating in a highly challenging environment for a sustained period of time, which has placed pressure on the company.
“As a result of these challenges, Allied Healthcare has taken the decision to pursue a Company Voluntary Arrangement (CVA), as part of a prospective business plan that will ensure safe continuity of care across our UK-wide operations, place the company on a sustainable long-term footing, and maximise repayments to creditors.”
The Staffordshire business has grown from being a one-branch home nursing service in Staffordshire founded in 1972 to the UK’s largest domiciliary care business employing 8,700 people.
It is owned by European private requity firm Aurelius Group, which bought the healthcare group from Saga in 2015.
Allied added: “Over the past two years we have made significant operational changes to move towards a long-term sustainable footing.
“The workable solution that we are negotiating with our creditors will address the short-term pressures facing the business, while avoiding any impact on our employees or the day-to-day care that Allied Healthcare provides across the UK.”