That coming Southern Cross disaster

So, if Southern Cross, the operator of a number of care homes or crumblies, goes bust, what will happen?

They all get turfed out on the street or something?

Southern Cross, which has 750 care homes and 31,000 residents, has said it will cut its rental payments for four months over the summer as it tries to reach a long-term rescue agreement.

However, sources close to negotiations say a significant number of Southern Cross\’s 80 landlords intend to seek alternative operators for their care homes.

A major landlord said: \”We are amongst a fair few who will not allow them to unilaterally drop rents as we know our units are all profitable and we have no desire to subsidise a busted business.

\”My sense of responsibility is that I do not want old people to be looked after by this lot. I want another operator to run the homes properly.\”

Err, no, it seems not. Agreed, I\’m not privy to the details of their contracts, but it seems that it\’s simple enough to bring in another operator: the homes will remain what they are, old folks\’ homes, just with a different company taking responsibility for paying everyone.

Not quite the disaster that we\’ve been told it could be by the usual suspects.

 

2 thoughts on “That coming Southern Cross disaster”

  1. But if what the old folks are paying in rent is insufficient to enable Southern Cross to avoid a massive loss, will there be many alternative providers queuing up to take them over?

    Tim adds: The landlords are going to have to take less rent then, aren’t they?

  2. So when they sold the homes to landlords to rent them back, they sold their business and didn’t realise it.

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