Nine charities across Scotland are set to benefit from a $1m (£750,000) surplus following the sale of Balmanno House, a registered charity in Glasgow’s West End that provided residential care for over 200 years.
These charities include Glasgow East End Community Carers, St Francis Care Home, Glasgow Children’s Hospital, and The Prince and Princess of Wales Hospice.
Other charities such as CrossReach, Association for the Relief of Infirmity in the West of Scotland, Ayrshire Hospice, and Tenovus Scotland Strathclyde were also among the beneficiaries.
The distribution follows the liquidation process managed by Blair Milne and James Fennessey, joint liquidators and partners at international business advisory group Azets.
Balmanno House was placed into administration in April 2023. The joint administrators continued to operate the care home briefly to facilitate an orderly relocation of residents to alternative care facilities.
Following significant interest, the property was sold to RSD Property Holdings for residential development for an undisclosed amount.
The sale ensured that all creditors at the time of administration were paid in full, including statutory interest, redundancy pay, and other entitlements owed to the former workforce.
The joint liquidators are now finalising arrangements to distribute the surplus funds to charitable causes in line with the wishes of Balmanno House’s Trustees.
Azets head of Restructuring and Insolvency in Scotland Blair Milne 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.”
“The actions of the Trustees, particularly seeking early advice on cash flow management, helped to ensure an orderly winding down of the care home operation, an optimal outcome from sale of the Company’s property asset and ultimately a substantial sum being distributed to charity at the end of the process,” he added.
“Scottish charities to share $1m from Balmanno House sale” was originally created and published by International Accounting Bulletin, a GlobalData owned brand.
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