Southern Cross, the troubled care home provider, is planning to return 132 of its homes to landlords. The company wants to return 47 homes by the end of September, with the remaining 85 returned by 2016. Southern Cross currently runs 752 care homes but has been struggling with high rents of about £200m a year. But the company denied a report that some homes faced closure, saying that no decision had been taken to close any of its homes. "We recognise that the current situation and continued media speculation will have caused concern to residents in Southern Cross care homes, and their relatives, and we apologise for this," said chairman Christopher Fisher. "Our primary concern in this matter remains the welfare of the residents living in our homes. The financial restructuring will not affect the provision of quality care in any of our homes." 'Incredibly distressing' It is expected that many of the properties will continue to be run as care homes, although some landlords may wish to use the properties for other purposes. Closing a home typically takes between four and six months, which should provide enough time to find suitable alternative accommodation for residents. Unison, the public sector union, said it was an "incredibly distressing time" for Southern Cross' 31,000 residents, their families and for workers in the company's homes. "Another day, another report of shocking lack of care from Southern Cross. How do this company's bosses, past and present, sleep at night?" said Dave Prentis, Unison's general secretary. "The government must step in to regulate the privatised care market. There are many other Southern Cross-style companies out there and this cannot be allowed to happen again." An earlier document, circulated at a meeting on Monday by two of the care home operator's landlords Four Seasons and Bondcare, had set out a plan to put Southern Cross into administration but that has now been dismissed. "The discussion document considered by the meeting of smaller landlords sought to establish those who would be prepared to issue winding-up petitions 'if required'. The situation has moved on and that document is no longer under consideration," Four Seasons said in a statement. On Wednesday, the Darlington-based company announced plans to cut 3,000 jobs from its workforce of 44,000 staff. It is struggling with high rents and has already deferred 30% of its rent to its 80 landlords for four months. The group plans to reduce its annual rent bill from £202.3m to £137.5m, according to the Financial Times. Southern Cross' landlords are currently holding their third emergency meeting in a week, as they attempt to come up with an alternative proposal that they can put to the company. Source:- http://www.bbc.co.uk/news/business-13724615
Southern Cross proposes 3,000 job cuts Southern Cross, the troubled care home provider, has announced proposals to cut 3,000 jobs out of its workforce of 44,000 staff. The company said home managers, deputy managers, relief managers, activity co-ordinators and administrators would not be directly affected. Southern Cross said it expected the cuts to be completed by October, after a period of consultation with unions. Unions called for the government to step in with financial support. Southern Cross has already deferred 30% of its rent to landlords of its 750 homes as it tries to avoid bankruptcy. The Darlington-based company's current rent payments total about £180m a year. Last month, it reported half-year losses of £311m and warned that it was in a "critical financial condition". 'Kick in the teeth' "In today's announcement we are engaging with colleagues to put in place the best possible staffing model for our future needs, and one which fully embraces the best practice available to us," said Southern Cross chief executive Jamie Buchan. The company said the job reductions were part of an ongoing programme of change, instigated by its senior management team 18 months ago. It said the cuts would not jeopardise the quality of care provided to its 31,000 residents, but this was disputed by unions. "The care sector is hugely labour intensive, and there is no doubt that job losses on this scale will mean elderly people in Southern Cross homes get a lower standard of care and some homes may be at risk of closure," said Dave Prentis, general secretary of Unison. Paul Kenny, general secretary of the GMB union, said: "This is the start of a disaster for the residents as well as a kick in the teeth for the staff. "The is the trigger for the government to step in with immediate financial support to ensure that Southern Cross continues to operate and continues to provide a home for 31,000 elderly and vulnerable residents." Judy Downey, chair of the Relatives & Residents Association (R&RA), a national charity for the welfare of older people in care, also called for government action. "We cannot just sit back and allow frail, vulnerable people to suffer, we want to see the government taking emergency action to safeguard these residents who are all at risk - even if that means taking over the assets of these homes and running them as a going concern," she said. Source:- http://www.bbc.co.uk/news/business-13697582
