Around 1,500 jobs have been saved as Gateshead’s Executive Care has been bought out of administration.
The firm, which operates 25 care homes across the UK, including six in the North East, entered into administration on November 26.
The business and assets were immediately sold by administrators from Deloitte to Conduit Street Holdings 1 Limited, a company connected with Monarch Alternative Capital (Europe) Ltd - a private investment firm that specialises in distressed debt purchases.
Clare Boardman, partner and joint administrator at Deloitte in the North East, said: “We are pleased to announce the sale of the business and assets of Executive Care Group Limited, which secures the future employment of some 1,500 jobs and protects the welfare of approximately 1,100 residents across 26 homes.
“The process to find a buyer for the business has resulted in our ability to keep all homes open and is expected to see the vast majority of unsecured creditors paid in full.”
Chairman of Executive Care, Simon Harrison, said: “We now have a tremendous opportunity to improve and grow the business long-term and to set and achieve new standards of care in the region.
“This new investment means that now, Executive Care can continue to deliver quality, long and short-term care to more than 1,200 residents. This is a very exciting moment for the whole company and we look forward to future growth.”
Speaking for Monarch, principal Matt Glowasky, said it was clear that Executive Care had a strong management team and a viable business model.
He added: “Executive Care has great potential and the business is able to move forward with its mission of serving residents.
“We are happy to be able to provide the company with the necessary funds to improve its capital structure to ensure long-term sustainability and success. We will be working closely with Mr Harrison and his team to build a stronger business for the future.”
In February this year the firm announced a “corporate review” after which it intended to focus on dementia care and “high end” nursing.
At the time it suggested 60 jobs, across nursing, carer and senior carer roles, would be created as a result of the strategy.
The group has homes in Middlesbrough, Stockton, Hemlington, Redcar, Hartlepool, Newcastle, South Shields, Birtley and Stocksfield and Alnwick.