Two companies, namely Transform Cosmetic Surgery Group Limited and Combine Operating Company, have collapsed due to their inability to pay off their debts which together sum up to 6.5 million pounds.
Both companies had over 30 centres, including both hospitals and smaller clinics distributed widely throughout the UK. They were one of the UK’s leading companies when it comes to the advancement and performance of cosmetic surgeries.
Now, due to their outstanding debts, the companies have been bought and brought together as one by a single entity which is The Transform Hospital Group. Transform is made up of a group of hospitals that are registered in the city of Manchester. Some reports have also pointed to many choosing overseas options for their surgeries. Thailand is currently the majority destination of choice for many seeking surgeries like nose jobs or rhinoplasty.
This financial collapse is just another result of the economic uncertainty that has befallen the UK due to its decision to exit the European Union in October 2019.
The UK’s decision to come out of the EU has led to a fall in the economy and a drastic change of fewer consumers spending as much money, resulting in more companies facing bigger penalties due to VAT. This has led to a fall in the UK’s economy, and companies are now facing the consequences. The decision to move the companies was absolutely crucial for them to survive and escape financial ruin.
The debt includes the tax fees owed to the government which sums up to 600,000 pounds. Meanwhile, Combine Opco owes the council of the district in Bromsgrove 125,000 pounds.
The administrators were of the notion that the cause of the debt was due to the scandal from the use of Poly Implant Prothèse (PIP), a fake and possibly dangerous material used for breast implants. This led to consumer distrust, affecting a lot of women in the process. They also blamed the increase of liabilities in VAT for this particular field of surgery.
Transform Limited (TFHC) ran a total of twenty clinics in twenty with its registration in Manchester. Meanwhile, Combine Opco has a total of thirteen clinics with its registration in Surrey.
Formed in 2015 and 2016 respectively, TFHC and Combine Opco created a pre-pack administration in case they got into debt. The move to make them one under Transform was under that policy.
The policy indicates that when faced with insurmountable debt, they will transfer assets to a new owner – the last resort – before the appointment of an administrator. This policy is completely legal. However, the debt remains and must be paid off.
Despite the slight changes the transition will surely bring to both companies, Transform has promised a smooth transition, and that all involved, including the staff of the hospital and the patients, will not be negatively affected in any way.
The surgery and aftercare packages will stay the same. The employees are all going to be retained. Patients are advised not to be unsettled by the change in ownership and to continue interacting with the companies as before.
According to the spokesperson, the process of transferring the employees to their new operating company has already been completed without any issues.