Birchley Hall care home closes as Qualia boss involved in ponzi scheme

As previously reported by the Star, it was announced in June that Birchley Hall care home would close as no buyer had been found since the facility was placed into administration.

Operated by Qualia Care, Birchley Hall was one of ten care homes that fell into administration in October 2022 after allegations of unauthorised investment schemes were made against its director Robin Forster.

On the same day of the Billinge care home's closure, on Tuesday, August 1, the Financial Conduct Authority announced that Mr Forster had lost a High Court case which found that £57 million had been taken from 380 care home investors.

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'Unlawful' investment schemes 

Birchley Hall was placed into administration along with nine other Qualia care home (Image: Alison Bowtell)

Following a trial in May, the High Court agreed that Mr Forster had made "false and misleading statements" to investors about the sustainability of the "unlawful" care home investment scheme.

Between 2016 and 2020, Qualia Care Properties Ltd and Qualia Care Developments Ltd offered investments in care homes run by a third company, Qualia Care Limited.

Investors could purchase a long-term lease of a care home room, costing between £50,000 and £75,000, and then sub-let the room back to the Qualia companies.

Investors were promised returns of between 8-10% of the purchase price over the period of the sublease, which the court agreed were "never likely to be achievable".

Following the ruling, the court will now determine the sums that need to be paid back to investors.

Unsustainable 'ponzi scheme' put 'investors and residents at risk'

Former director of Qualia Care, Robin Forster (Image: MBI Consulting)

Steve Smart, Joint Executive Director of Enforcement and Market Oversight at the FCA, said: "Mr Forster didn’t just put investors’ funds at risk by selling investments in an unauthorised scheme that was not sustainable, he also put at risk the wellbeing of residents of the care homes, many of whom were vulnerable.

"The Qualia scheme offered unrealistic returns based on its unsustainable business model and operated like a Ponzi scheme.

"Mr Forster’s reckless behaviour put investors at serious risk, and we will now seek compensation for them."

What does this mean for Birchley Hall?

Staff said their goodbyes after years of working with each other (Image: Alison Bowtell)

Although all Qualia Care facilities were drafted under the supervision of Healthcare Management Solutions (HMS) during administration, Birchley Hall is the first to close for good.

It is believed that administrators found difficulties in finding a buyer due to recurring problems with the historic building's facilities, with faulty lifts and chair lifts often restricting residents' movement.

With Birchley Hall specialising in end-of-life care and supporting elderly residents with dementia, 23 residents were moved to neighbouring care homes in the days leading up to the closure.

While most of this transition has been smooth, one 99-year-old resident died just six days after transferring to a new facility, a staff member said.

With the care home's closure also leaving around 60 staff members looking for a new job, it has been a "devastating" few weeks for former employees.

While some staff members have found new roles, some are said to be still looking for work while others have decided to retire.

Staff left 'devastated' at care home closure

Many staff are upset about how the care home's closure and how it was handled (Image: Alison Bowtell)

Alison Bowtell, a former Birchley Hall carer, said that while staff have received redundancy packages, an air of frustration remains at the abrupt closure and the "lack of support" from administrators.

Alison said: "Everyone is just absolutely devastated about the closure, and we all came to say our final goodbyes yesterday.

"A care home is not just a job, it's somewhere that you care for residents every day, and the whole experience has been really upsetting for us, the residents, and their families.

"The administrators said that they would fully support staff to find new homes, but they did not support us at all.

"We have now been told that if we get a new job this will affect our notice period pay. 

"We made the residents' transition to other care homes as comfortable as possible, but we're all still very angry." 

'No alternative' found to closing care home

Birchley Hall has now closed after fifty years in Billinge (Image: Birchley Hall)

In a previous statement, the care home spokesperson said: "We are extremely sorry that we have found no alternative to closing the home despite exploring every avenue.

"Unfortunately, the scale of work required to bring the building up to the standards our residents deserve is not viable.

“We understand that this is a difficult time for everyone, and we will work with the local authority and our residents and their families to support a smooth transition to new homes. 

"We’d like to thank the fantastic staff team and they will be supported to find positions in a sector that is desperate for good quality people.

"They will also be welcome to apply for roles within the wider group.”

Robin Forster resigned as director of Qualia Care in September 2022. All Qualia companies are now in administration while another of Mr Forster's companies, Foterm Global Limited, owned with Richard Tasker, is in liquidation.