Brought Down by Rent Bills They Could Not Afford

The JournalJuly 12, 2011

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Summary


SOUTHERN Cross is the UK's largest care home operator but ran into a financial crisis brought on by a rising rent bill and lower fees as occupancy rates declined and local authorities reduced the number of patients they placed with the group.

For some weeks it has been locked in negotiations over a restructuring of property arrangements. It negotiated a 30% rent cut for four months while the talks continued but, though some landlords had been expected to take back their properties, yesterday's announcement that all had decided to walk away was a surprise.

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Brought Down by Rent Bills They Could Not Afford

The group has 80 landlords but it is ...

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