TROUBLED care home provider Southern Cross is reported to be seeking £100 million investment to prevent collapse and may close 200 homes.
The care home operator, which runs Kingswood Lodge and neighbouring dementia home Penwood Lodge as well as Castle House in Wickwar, refused to deny rumours that it was seeking £100 million to secure its future.
The union GMB also claimed the company could be looking at closing 200 homes, a statement that has also not been denied.
Last week the company confirmed that its landlords had been asked to agree to a four month deferral of 30 per cent of the current rent charge with effect from June 1, 2011.
The published accounts of Southern Cross show that in 2010 the company paid £248.3m in rent to the owners of the all properties in the UK. GMB estimated that the company paid an average rent per bed to landlords of £6,444 in 2010.
Stuart Fegan, GMB organiser said: "The situation at Southern Cross is very serious. GMB single-handedly has been telling the authorities and the landlords - particularly QIA the largest - that the way the funding spent on the care of the elderly is being used to pay inflated rents is unsustainable. GMB’s warnings have been totally vindicated.
"People playing politics, profits and interest rates with the welfare of 31,000 elderly and vulnerable residents who have served this country all their lives is totally out of order. It is a modern outrage made even worse as there are also 44,000 jobs at stake."
Southern Cross declined to comment.
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