Gateshead Dispensary Nursing Home (Craigielea) Limited (01781610): administration
- Status
- Administration ended
- Administration began
- 2014-02-07
- Administrators
- Linda Ann Farish, Anthony Alan Josephs
- Administrators' firm
- RMT Accountants & Business Advisors
- Incorporated
- 1984-01-06
- Location
- Newcastle upon Tyne
- Industry
- 87100 Residential nursing care facilities
Why it went into administration
- Regulatory change or action
- Property / lease costs
- Sustained trading losses
- Funding withdrawn / unable to refinance
From the administrators' statement
The Company ts a registered charity and a private company, limited by guarantee with no share capital, controlled by an Executive Committee of Trustees (the Trustees) The Company operated as a residential nursing home in Low Fell, Gateshead The Board of Trustees were advised by their solicitors, Muckle LLP, to contact RMT Accountants & Business Advisors Limited to seek insolvency advice in June 2013 when the Trustees became uncertain as to the long term financial position of the Company Muckle LLP continued to advise the Board of Trustees When we were initially instructed the Company's financial position was unclear and its position was largely dependent on the value attributed to a significant claim by the Homes & Communities Agency (“HCA”), who had provided a grant to the Company in or around 1985
The Company’s turnover had reduced substantially in late 2012 following an adverse Care Quality Commission ("“CQC”) report which was issued in September 2012 Upon receipt of the report the home voluntarily closed to admissions This lead to a reduction in turnover when those leaving the home were not replaced The Trustees agreed to close to admissions voluntarily in order that they could take time to fully review procedures before looking to reopen to admissions in the short term They did not appreciate that the permission to re-open would be subject to a stringent review by the Local Authority and the home was unable to re-open to admissions until December 2012
The breakeven position of the Company is at an 80% occupancy level and the voluntary closure reduced occupancy from an average of 90% to below the breakeven position The Company began to experience losses of circa £30,000 per month
Administrators' statement of proposals (2014-03-04) · Companies House register