Landlords agree deal with Southern Cross
STRUGGLING care homes manager Southern Cross has agreed a deal with landlords to give it more time to solve its financial problems.
Southern Cross and its landlords sat down with the department of health and other stakeholders yesterday to thrash out a longer term agreement, following a short-term rent reprieve granted last month.
The firm and the landlords issued a joint statement after the meeting assuring care home residents that “continuity and quality of care…will be maintained”, and that the two sides will have a say in the future structure of the firm in talks 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,” the statement said.
The co-operation of the landlords was vital to the survival of Southern Cross, which has racked up a £5bn rent bill under a sale-and-leaseback arrangement put in place between 2005 and 2007.
Options for the firm include handing back some of its care homes to landlords, who would in turn find new operators.