One of the UK’s largest care groups, Four Seasons Health Care, has gone into administration.

Two of the holding companies behind the firm- Elli Finance (UK) and Elli Investments- appointed administrators on Tuesday 30th April after struggling to repay their debts.

According to Sky News, which first reported the news, it is the biggest collapse of a care homes business since Southern Cross in 2011.

The group, which serves around 17,000 residents and patients and employs some 20,000 staff, has stressed that the move will not affect care arrangements or lead to the closure of homes. The operating companies that run Four Season homes are not in administration.

Professional services firm Alvarez & Marsal has been appointed to handle the administration.

The group said it had secured funding to ensure continuity of care while it seeks a new owner.

Terra Firma Capital Partners, the private equity firm led by Guy Hands, bought the group in 2012 for £825m but has since seen a £450m writedown on its investment.

It has also ceded control of the group to US hedge fund H/2 Capital Partners, which holds a large amount of its debt.

A majority of Four Seasons' operations are funded by the state, with about a fifth of them funded privately.