Bromsgrove District Council called on to recoup almost £200,000 owed to it by firm in administration but still trading - The Bromsgrove Standard

Bromsgrove District Council called on to recoup almost £200,000 owed to it by firm in administration but still trading

Bromsgrove Editorial 22nd Aug, 2019 Updated: 23rd Aug, 2019   0

BROMSGROVE’S Labour Group is calling on the district council to recoup almost £200,000 it is owed from a company which has gone into administration.

A pre-pack administration process was carried last month for Combine Opco and TFHC Ltd, owners of Dolan Park Hospital on Stoney Lane, after falling into £6.5million worth of debt between them.

The two companies – essentially one business split into two legal entities – were restructured into ‘The Transform Hospital Group’ (THG).

The hospital services have carried on after the business and assets were acquired by THG.




Bromsgrove Labour leader Michael Thompson said: “When the company first went into administration in 2016 it owed, and did not pay, the council £56,000.

“Now it has done it again and owes, and do not have to pay £125,000 in tax.”


THG is run by the same director as Combine Opco and TFHC Ltd but will have its debts left behind.

It is a legal practice and has happened elsewhere in the country but leaves millions of unpaid bills and taxes in its wake.

The BBC reported last week a nearby grocery store, which supplied bread to the hospital, also suffered from the situation.

Coun Thompson called on Bromsgrove Council leader Karen May to write to Chancellor Sajid Javid, urging him ‘to have a proper look at this and make sure residents didn’t miss out again’.

“I would like to see them recoup some of this money – given our current budget means we are on course for bankruptcy and using up all of our reserves.

“It’s appalling a multi-million pound company can get away with not paying us almost £200,000 in tax.”

Coun May said council officers are currently looking into the issue.

Combine Opco and TFHC operated, and continue to operate under THG, more than 30 clinics and hospitals across the UK.

THG says under the circumstances, the pre-pack administration process was considered the only alternative to enable it to continue trading.

By doing this it has managed to preserve the jobs of all employees.

The company, which chose not to comment on money owed to the council when contacted by the Standard, is also now in a position to continue to trade with many of its suppliers.

This would not have been the case had the company had gone into liquidation.

A spokesperson from The Transform Hospital Group said: “There is absolutely no impact on patients who have had or are due to have their surgery with us.

“All aftercare packages remain in place and patients should attend their scheduled appointments as usual.

“As ever we are dedicated to providing outstanding care and industry leading aftercare to our patients across the UK.

“All employees have been transferred to the new operating company, so patients will continue to be treated in our first class facilities, with the same dedicated clinical staff.”

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