CVA sought by care firm

‘Highly challenging environment’ blamed for problems

One of the biggest private home care providers in the UK is seeking a rescue plan.

Financial pressures have forced Allied Healthcare to pursue a company voluntary arrangement (CVA).

The Stafford-based firm cited a “highly challenging environment” for the business, which cares for 13,500 patients annually.

Allied Healthcare’s Scottish network includes branches in Aberdeen, Fraserburgh and Elgin.

Struggling companies try to agree a CVA with creditors to revive their fortunes while paying off debts.

Allied Healthcare, founded in 1972, insisted its decision to go down that route would “not impact on the safe continuity of care”.

It added: “Allied Healthcare has been operating in a highly challenging environment for a sustained period of time.

“As a result of these challenges, Allied Healthcare has taken the decision to pursue a 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.”

With 83 branches across the UK, 8,700 employees

“The business plan will ensure safe continuity of care across UK-wide operations”

and 150 local authority and other contracts, Allied Healthcare said there would be no redundancies or closures as a result of CVA implementation.

It said it would be “business as usual” for employees and customers.

The provider offers a range of services including end-of-life care, as well as home visits.

RESCUE PLAN: Allied Healthcare looks after 13,500 patients every year but is facing financial trouble