Auchlochan Garden Village is home to 360 people in various residential facilities, including two care homes, and employs a total of 216 people.
However, the complex is understood to have been losing money since it was acquired by MHA Auchlochan in 2009.
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The parent organization of MHA Auchlochan is Methodist Holmes, a charitable organization founded by the Methodist Church in 1943.
Methodist Homes is said to have provided “substantial” financial support, but “uneconomical” service charges, labor and maintenance costs and low occupancy rates have resulted in losses at the Lanarkshire complex. continue.
Blair Milne, James Fennessy and Robert Young, bankruptcy practitioners from accounting firm Azez, have been appointed co-managers of MHA Aukrochan, it was announced this morning.
Auchlochan sits on 50 acres with 235 properties ranging from studio flats to 3 bed bungalows. About 55 of the apartments and bungalows are currently vacant.
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The company also operates the Lower Johnshill Care Home in the village and the Bunkhouse Care Home in the adjacent village of Lesmahgo.
There are 242 residents in apartments and bungalows, and 118 residents in two nursing homes.
The co-managers are continuing to operate the village and nursing home as normal and plan to appoint a real estate agent to put the property up for sale.
A specialist interim care home management business, Healthcare Management Solutions Limited, has been appointed to oversee day-to-day operations and minimize impact to residents, families, staff and suppliers. At this stage, no staff reductions have been made.
MHA CEO Sam Monahan said: However, Auchlochan’s operating model means that there are a variety of complex legal, operational and financial issues throughout the village that the MHA has not resolved despite investing significant resources over the past 14 years. yeah. As a charity, we regret that we cannot continue this.
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“This is not a decision taken lightly by us and Auchlochan will be able to withdraw a £5m contingency from MHA to support the continuation of services during the management process. It offers the best opportunities to find new operators, including the possibility of setting up a management company for
Monaghan added that the MHA is now also withdrawing support for three small retirement plans in Scotland. Taransay Court, Milton, Glasgow. and St Andrews Court, St Andrews – “for the purpose of selling them to alternative providers”.
he said: These changes will prevent MHA from providing services in Scotland. ”
Blair Milne, restructuring partner and co-manager of Azets, said: Despite the best efforts of the Directors and extensive financial support from Methodist Holmes, no actionable improvement could be achieved outside of the management process.
“Because of the scale and complexity of the development, it will take time to develop a strategy for the administration. and working closely with professional bodies to support residents and their families during the process. We encourage you to contact us.”
