HSN Care Limited (07813762): administration
- Status
- In administration
- Administration began
- 2022-05-18
- Administrators
- Tyrone Courtman, Gareth Harris
- Administrators' firm
- RSM
- Incorporated
- 2011-10-18
- Location
- Birmingham
- Industry
- 87900 Other residential care activities n.e.c.
Why it went into administration
- Regulatory change or action
- COVID-19
- Rising costs / inflation
- Creditor pressure / legal action
- Parent or group failure
- Brexit
From the administrators' statement
The Company was incorporated on 18 October 2011. The group of companies itis a part of was set up for the provision of residential disability care facilities. The Company is in effect a holding company which holds shares in a number of subsidiaries including a trading entity which operates from a premises known as The Kestrels in North London. The Kestrels is registered with the Care Quality Commission (CQC’) for 12 residents and is currently fully occupied. The Company is owned by Leon Lenik (director), Janet Lisozzi-Lenik and Lionheart Capital Inc. (‘Lionheart’), a company incorporated in the Bahamas with a registered office of Goodman’s Bay Corporate Centre, West Bay Street, P.O. Box N3225, Nassau, Bahamas.
In January 2022, a winding up petition was presented against the Company by the developer of a new care facility owned by the group known as The Hamptons, in respect of a guarantee provided by the Company. This followed a legal case against the group company which subsequently went into liquidation. A settlement was later reached between the Company and claimant which resulted in the petition being dismissed.
The Group had faced financial difficulties which we understand were initially due to the delays in the completion of the second home known as The Hamptons. This was delivered late and just prior to the Covid pandemic, which meant that the home was unable to apply for a CQC registration and therefore could not open to begin to generate income. The effects and impacts of Covid, both in terms of delaying the opening of The Hamptons but also operationally and financially on The Kestrels, along with Brexit impacts and recently cost inflation all impacted the group’s and the Company’s cashflow. Allied to the funding of significant legal costs to defend the developer's claim, after making initial payments under the settlement agreement the Company’s cash flow proved insufficient to be able to meet that and other liabilities accruing as they fell due.
Administrators' statement of proposals (2022-07-18) · Companies House register