TWO North East care homes in a group facing possible closure by beleaguered operator Southern Cross have been saved from the axe.
Landlord and fellow care home operator Four Seasons said it will take back 45 homes it had leased to the Darlington company and will run them itself. It said none of the homes would be closed, despite Southern Cross describing a “significant” number of them as commercial unviable.
The homes include Stapleton House in Jarrow, South Tyneside, and Durban House in Blyth, Northumberland. The 45 homes have 1,921 beds and an average occupancy rate of around 80%.
Four Seasons owns and operates more than 400 homes itself and had been widely tipped to take back those it rented to Southern Cross. Four Seasons spokesman Rob Mitchell said: “They are 45 homes that have been leased by Four Seasons under a historic arrangement with Four Seasons’ previous owner.
“The arrangement to take back the homes is entirely in line with the agreement between Southern Cross and the landlords. It’s not a surprise to Southern Cross.
“People in the homes will not see any immediate change, but we do plan some investment in the homes. We do not intend to close any. We will be offering continuity of employment to staff.”
He said there would be a shake-up at senior and regional management level but this will not effect ordinary staff. Chris Jukes, regional political officer for the GMB union which represents thousands of Southern Cross staff, said: “If this is going to safeguard employment, safeguard beds and safeguard care, then clearly it is positive.
“It’s got to be welcomed, not just for our staff but it’s got to be good news for residents and their families.”
Southern Cross is the UK’s biggest care home operator around 752 homes, including 106 in the North East. Nationwide, it employs 44,000 staff caring for 31,000 residents but last month announced plans to make 3,000 people redundant.
The group has been brought to its knees by high rents combined with falling fees and lower occupancy rates from its key local authority customers. It has negotiated a 30% cut in its rents over the summer while it continues negotiations to stay afloat.
Other landlords are expected to follow Four Seasons’ suit and take back homes to run themselves. Bondcare, which leases 40 homes to Southern Cross, says it will do so but the two biggest landlords – NHP and London & Regional – have not yet revealed their plans. Analysts expect Southern Cross to emerge from the crisis as a smaller group with around 400 homes on its books.
