Several charities across Scotland will share £1 million of surplus funds following the sale of Balmanno House, a care home for more than 200 years, which collapsed into administration in April 2023.
The registered charity in the West End of Glasgow, became a care home casualty as the sector falls victim to rising costs, insufficient public funding and labour shortages.
Following a considerable level of interest the property was sold to RSD Property Holdings for residential development for an undisclosed sum.
The sale has since ensured that all creditors at the date of administration received payment in full, together with statutory interest, including payment of all redundancy pay and other entitlements due to the former workforce.
Blair Milne, joint liquidator and head of restructuring and insolvency at Azets in Scotland, said: “The challenges facing the care sector have been well documented in recent years, with many care homes caught in a perfect storm of rising labour and operational costs, insufficient public funding, workforce shortages and unstable occupancy levels, all whilst compliance requirements have intensified.
“Many are operating at very tight margins and unable to increase revenue to meet rising operating costs. Sadly, a number of care homes have had no option but to enter into an insolvency process due to an inability to meet the liabilities of the business.”
Mr Milne, together with James Fennessey, continued to trade Balmanno House for a short period to ensure an orderly relocation of residents to alternative care.
The insolvency process moved to a liquidation to allow the affairs of the company to be wound up and the funds distributed to creditors.
The joint liquidators will now distribute the surplus funds held in the liquidation for charitable purpose which are in accordance with the wishes of the Trustees of Balmanno House.
Mr Milne said: “It gives me great pleasure to see such a substantial sum being made available for distribution to charity.
“It is very rare for all creditors to receive full repayment together with interest from any insolvency process, let alone such a substantial sum being made available to charities.”
On behalf of the board of trustees, Allan Carrick said: “The former trustees of Balmanno House are delighted with the outcome of the administration and subsequent liquidation and are very pleased that so many deserving charities of their choice will benefit from the distribution of the surplus funds.”
Charities receiving funds:
Glasgow East End Community Carers
able2sail
St Francis Care Home
CrossReach
Association for the Relief of Infirmity in the West of Scotland
Ayrshire Hospice
Tenovus Scotland Strathclyde
Glasgow Children’s Hospital
The Prince and Princess of Wales Hospice
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