Southern Cross reach agreement with landlord16th June 2011
Troubled care home operator Southern Cross has reached an agreement with its landlords over its immediate future.
The arrangement will give it four months to find a solution to its financial difficulties and allow it to continue to run all 751 care homes during that time.
Darlington-based Southern Cross and its 80 landlords issued a joint statement after a meeting to broker the arrangement.
It said: “The company and the landlords will work towards a consensual solution to the company's current financial problems, which will be delivered over the next four months.
“The business, including the delivery of care, will continue to be the responsibility of the Southern Cross board, management team and staff who have the full support of both the landlords and lenders in the delivery of this important task.”
Government representatives were not present at the meeting, but the Department of Health has been monitoring the situation.
A spokesman said: “There is likely to be a series of meetings in coming days over the future of Southern Cross. Government is clear that all parties must work together to agree on a plan that will safeguard the continuity of care of residents.”
It is believed that once the process has been completed, Southern Cross will end up operating under a different name with between 250 and 400 of its current 751 care homes with other operators running the rest of the homes.
Southern Cross has 31,000 residents, and employs 44,000 staff, but will cut about 3,000 of them.
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Saturday 25th June 2011 @ 0:55
I believe that the problems was that in the past Southern Cross property was sold and they leased back the property to operate this care homes. Managers who take this stance to benefit themselves and shareholder who benefit out of the sale of properties in the past should now dig deep in their pocket to ensure that workers are not made redundant and the resident are not left without a home. \r\nI feel the government should penalised these sort of oportunist as they are they wreck the country, the industry and just selfish.If they are hauled back to repay then it would deter such opportunist from lining their own pockets,
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Title: Southern Cross reach agreement with landlord
Author: Mark Nicholls
Article Id: 18815
Date Added: 16th Jun 2011