Southern Cross, the financially troubled owner of 752 care homes in Britain, said on Monday that it would close, but added that its 31,000 elderly residents would continue to receive care.
The company said in a statement that it plans to cease operating and hand its homes over to Southern Cross’s landlords after failing to reach a deal to restructure its rental agreements.
Shares in Southern Cross were suspended after the firm finally collapsed, though shareholders had already lost their investments after a dramatic share price slump in recent months. The group employs 44,000 staff.
“My objective, and that of my team, is to continue to provide excellent care to every resident and to manage the programme of transition professionally,” Southern Cross chief executive Jamie Buchan said in the statement.
British Prime Minister David Cameron’s spokesman said that no care home residents would be made homeless following the company’s collapse.
“We have said all along that no-one will be left homeless as a result of this,” the spokesman told reporters on Monday.
“Local authorities have a duty to ensure people get appropriate care. There are currently around 50,000 spaces available across the country so there should be no reason why anyone will be out on the street. We will ensure that they have somewhere to live and they have appropriate care. “The department are talking to Southern Cross about precisely what happens next.”
The spokesman added: “Obviously we want to minimise disruption to anyone who might be affected by this.”
London, July 11, 2011 (AFP)
