A Mitie fall from grace
Home care providers sold for £2
ONE of the UK’s biggest home care providers have been sold to a private equity firm for just £2.
Outsourcing giants Mitie were forced to throw in a £9.5million dowry to get shot of the loss-making arm.
The GMB union warned “asset stripping” could harm the offshoot’s 5000-strong workforce and thousands of old, frail and vulnerable patients.
The new buyers, Apposite Capital, rejected the claim.
It comes amid a crisis in the social care system, with growing needs from an ageing population, but squeezed NHS and local authority budgets.
Office cleaning and security giant Mitie bought the home care business in 2012 for £111million.
The business has struggled since, been blasted for low pay rates and investigated for “institutional abuse” of elderly patients.
Revenues in the MiHomecare arm plunged to £42million in the past 10 months, with losses growing to £8.8million.
GMB national secretary Rehana Azam said the deal “will set alarm bells ringing”, adding: “Our members need proper resources to provide the dignity those they care for deserve, not the prospect of asset stripping.”
David Porter, of Apposite, insisted: “We are not doing any asset stripping. We know the care force must be looked after and will do everything we can to improve processes and IT and everything to maximise the quality.”