European Care

May 13, 2011 | By | 20 Replies More







Following a request from solicitors Speechly Bircham LLP on behalf of European Care certain comments made by employees/ex employees and associated family  have been removed.

Speechly Bircham LLP have also demanded that the statement given by Chairman David Perry and all other details be removed.

We have declined to remove comments which appear to be thought provoking and not necessarily directed at European Care.

Please note that defamatory comments and accusations will not be tolerated however observations and opinions will be, as long as the contributor is prepared to be identified.

As a news service for the care industry we are determined to uncover all bad practice and any relevant information regarding care operators who fail either their residents/clients or staff and supply readers with the truth.

Further more as the situation at Castlebeck has shown ‘Whistleblowing’ to your own employer does not necessarily get the right result but going to the media usually does.

As a result Care Industry News will investigate the allegations made against European Care and report back.

Please note that both Care Industry News and the National press would like to hear from anyone regarding previous comments and all allegations now removed.






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Category: Business Transfer, Care Operators, Dementia Care, General Info, Local News

Comments (20)

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  1. Dan Simpson says:

    “As a result Care Industry News will investigate the allegations made against European Care and report back”

    • Tim says:

      Hello to the users of this thread. I am currently involved in investigations re potential criminal proceedings in relation to the fund raising to the European Group (the group itself is not the accused).

      If you were an employee of European Care or have any helpful information i would appreciate if you could contact me. The information i would be after is in relation the financial affairs of the group during 2011.

      During 2010 and 2011 millions of pounds was loaned to the group by various lenders on the basis that it was doing well financially and about to go public. I would very much like to hear from anyone who can show me the contrary, ie that the Group was in financial trouble and experiencing difficulties, such as problems with cash flow and payments to 3rd parties.

      We can of course see the accounts but such things can be hidden by clever accounting procedures, especially since the group comprised of 100+ companies including offshore companies, which is why more information is needed.

      Thank you. If you have any information please reply to this post and then I will send you my contact details.

  2. Dan Simpson says:

    “As a result Care Industry News will investigate the allegations made against European Care and report back”

    Are we still waiting or was the interview with the CEO “it”??

  3. I have read these comments with interest having had a firsthand relationship with European Care.

    European Care grew quite quickly to be the 4th or 5th largest operator in the UK, the only way to achieve this is through good business management and good accounting, this supported by entrepreneurial thinking of the chairman.

    I could not comment on the freehold ownership of European Care Homes, but I am sure that they are not all operated as the SC sale and leaseback model.

    Groups have come under significant pressure over the last three years as a direct result of the banking crisis, values dropping and so L,T,V’s becoming very high and then cash flow being strangled as the banks withdraw facilities. This situation I imagine will be magnified for a company that does not have any bricks and mortar assets.

    From memory, I believe that the previous comment in regard to property being held offshore is potentially true; when I was the General Manager at Vendors Plus I remember invoices coming in to my office for monthly rents for 28 Welbeck Street, London (European Cares head office). The Vendors Plus office was in York, our registered office was 28 Welbeck Street, so it is only fair that Vendors Plus Ltd paid the rent to Esquire Reality, at least Vendors Plus could claim the VAT back.

    Groups are going through difficult times at the moment as a result of the banking crisis, and turning these big ships around takes some time, I wish EC, the Chairman, Board and Staff the best of luck; things may be easier with the recent change at the top.

    From my experience of working with European Care, I can assure people that the staff at the coal face and their managers are extremely passionate about their residents, and are very competent.

    Maybe a statement voluntarily issued to the press after the departure of Mr Amlani would have avoided the speculation. I have not written this to defend European Care, I owe them no favours, in fact I do believe that the Chairman (or maybe Mr Amlani) have over the years since me leaving their employment, personally intervened to try to stop me doing business. I do not hold this against them; it is just another challenge to overcome.

    All the best to all the staff and board of EC.

    Dominic M’Benga

    The above are my personal views, recollections and opinions.

  4. Jane says:

    They obviously have disgruntled staff, which explains why they’ve sent out a ‘Press Release’ to their own employees saying financially they are fine.

    May be they are but having read these comments and looked at how the company is structured it does appear that whilst the actual owner/investor is pretty much protected the residents and staff are not.

    Morally it’s got to be wrong to allow a company to operate within the care sector where their first interest is money and their last thought is care?

    We live in a capitalist society and I’m glad but I feel very uncomfortable about how care is delivered by people who really don’t care.

    After all they will never stay in one of these homes, they can afford to live in Monaco and have care delivered to them.

  5. Robbed By De Bank says:

    This sale and lease back arrangement is a legal procedure.

    The people who make the money are the executives, the bankers and the accountants.

    It doesn’t matter who it is-Their accountants are paid to find the easiest and most efficient way of avoiding paying any tax so by selling the actual properties and then renting them back at extortionate rents, helps to remove any profit for the company in this case The Priory Group, European Care and Southern Cross.

    The ‘owners’ of the companies will legally avoid paying tax and will be the first to remind government (after all they all attend the same functions and pee in the same pot!) that this maybe so; but look at the amount of people they employ and the PAYE contributions they make.

    Until government is forced to stamp this out it will always remain a lucrative way of avoiding tax and I bet given the same skilfully earned profits there are very few people who wouldn’t do exactly the same?

    Where it sticks in the throat is that when it goes wrong, it’s the tax payer who once again picks up the bill and this country simply can’t afford it!

    The arrangement with The Priory Group is fairly recent- Certainly the bank involved is aware of the potential of the ‘tenants’ being unable to fulfil the agreement-This can be due to poor results from the CQC etc but the ‘owners’ don’t care. Pop goes Southern Cross or european Care or The Priory Group, the list is endless, the fact is they still really own the assets and therefor they’ve milked the company and received the benefit of £1000 per bed per week but they’ve also had the rents-It’s a no brainer.

    This only demonstrates that the banks are still relatively free to make grotesque mistakes because the government have involved us in the bail out but whilst David Cameron is happy to be advised by non domiciled non tax paying multi millionaires we have no choice but to swallow another company going bust or we keep it afloat until another wealthy individual raisesthe capital to do the same thing, again.

    Jobs for the boys!

  6. Mark Sadler says:

    forgot to mention, i heard this story from another source today, i don’t know if it came from here, but it does make you think – No smoke ??

  7. Mark Sadler says:

    Is this the guy who owns a food company? They supply supermarkets etc., that’s a seriously big and profitable business. If you want to find out if he’s in trouble check that company out.

  8. Mark Sadler says:

    I can’t believe what I’m reading.

    At what point does this kind of activity become fraud ?

    Southern Cross ran off with all the money and left the tax payer to pick up the bill. Without any regard for the residents.

    But this sounds worse – even more deliberate.

    How many more times does this have to happen ?

    A line has been removed

  9. Robin says:

    Look at the Telegraph article. it says they rent their homes from a property company in Gurnsey (is that a tax haven?)

    And said property company own major shares in European Care, so how simple is this scam ?

    The owner of European care is friends with James Caan the lovely dragon, (fell out with Duncan Bannatyne – all round good egg! And fell out with the woman who he invested in remember the “it’s a loan” scam but i still want 50% of your company and interest ? – now no longer a dragon !!!

    So the owner of EC has buckets of cash and owns the company which owns the properties he rents back – confusing accounting they call it.

    And he is refusing to pay the builders c.£500,000 pocket change, especially when you have 4,500 beds in your care home all charging around £1,000 per week !!

    £4 1/5 million quid a week !! Isn’t that enough ??

    Someone pointed out that social services are to blame – they are not !!!! How many of European care’s care homes are contracted to social services ?

    Southern Cross was about 80% European Care will be less than 10%.

    Someone should put a stop to this. we should demand an enquiry. My next letter is to my MP !
    scandalous !!!!!

  10. Sharon Howe says:

    Read the Telegraph article I’ve put on and decide for yourself.

    I bet if you look behind the companies details and examine who the directors are it might give you food for thought?

    This is another Southern Cross and like SC the people who matter probably don’t realise that they live in a house made of cards.

    European Care don’t own their own homes.

  11. anon says:

    These comments have been removed pending our investigation

  12. Sharon Howe says:

    Read this and make your own mind up everyone.
    Is European Care suffering because of cuts; bearing in mind that most residents pay their own fees or are there far bigger problems and who will walk away with the money whilst another care group goes bust?

  13. sara says:

    Its sad that government squeezes have made the care home industry suffer like this. how are care home companies suppsoed to do well if the government is not going to pay proper fees and cause all sorts of money problems for care groups like for southern cross. my grandma is in a home run by european care and she loves it there so whatever problems they might have in head office, at least it is not affecting her care. she moved in last yuear from another home and receives amazing care from the staff she is so so happy i cant imagine her being somewhere else. the government should think about this before making it harder for the care home companies.

  14. cin-admin says:

    Please note that the article referred to is a statement from European Care and does not contain accusations of any kind. Owner.

  15. Annonymous says:

    These comments have been removed pending our investigation

  16. Martina says:

    These comments have been removed pending our investigation.

  17. Liz Smith says:

    I believe the comment made by David is not true.

    I believe Paul Smith was was a good man.

    Parts of this have been removed.

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