Thu, 02 Jun 2011 | BUSINESS SALE
As Southern Cross searches for ways to keep its head above water, its rivals are circling, attracted by the potential opportunity to take on more care homes.
Southern Cross chairman Christopher Fisher is reported to have said that up to 250 homes could end up being taken into new ownership or closed down. A restructuring process is to be implemented to see what can be done to avoid bankruptcy.
The care home operator has recently negotiated to pay a third less rent to its landlords for the next four months. It had been buckling under the weight of a £230 million yearly rent bill for its homes, having disposed of most of its freeholds in the property boom.
Bondcare and Four Seasons, two rival operators and landlords to some of Southern Cross's homes, both want to take back control over their 39 and 45 freeholds respectively.
Bondcare said, "Our suggested solution is to take back the operation of our homes… In our view the rent reduction does not solve the underlying problem."
Some of the larger landlords to Southern Cross could apply to put the troubled group into administration, however the potential reputation damage of putting 31,000 vulnerable people at risk is likely to be a deterrent to such a move.
Losses for the six months to March amounted to £310.9 million, while revenues fell 3.4 per cent to £464.3 million, hit by falling fees.
For sale is a long-established tree surgery and arboricultural services business with an excellent reputation, serving both domestic and commercial sectors across Southern England, including the Home Counties and London.
An opportunity has arisen to acquire a mechanical engineering company specialising in the Water Industry. Benefitting from over 3 decades of trading, this business has built a solid and long standing client base comprised of prominent UK utility comp...
An opportunity has arisen to acquire a reputable IT support and development services provider with a UK-wide client base and a proven record for innovation and resilience in the constantly evolving IT sector. Throughout its 25+ year trading history,...
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.