Thursday, 2 June 2011

Help me out here...

This paragraph from an article in The Telegraph about the impending failure of Souther Cross Care homes - and whether taxpayers' money should be used to bail them out - immediately caught my eye:

Southern Cross, which made a £311 million loss in the six months to the end of March, has blamed its problems on reduced council spending on long-term care. The group announced this week that it will be forced to cut the rent it pays to the landlords of the homes it runs by 30% for four months.

Nuff said.

3 comments:

Deniro said...

In the report I heard the properties used to belong to the company but were sold with a guarantedd rent to the said landlords.

Lola said...

D. Sold. But who to? It could be an internal exercise.

Deniro said...

Relevant -

http://www.dailymail.co.uk/news/article-1393294/Southern-Cross-Healthcare-destroyed-Stephen-Schwarzmans-private-equity-firm-Blackstone.html