Southern Cross seeks £100m
Care home operator Southern Cross must raise £100 million as part of its attempt to stay afloat, it has been reported.
The company was hit by local authorities decisions to spend less on care homes and now is aiming for a cash injection from its investors, reports the Sunday Times.
As the biggest care home provider in Britain, potential closure could affect thousands paying for care in the country.
According to the Observer, Paul Kenny, general secretary at the organisation, said: "These care homes are not factories that are failing from lack of demand but are an essential part of every community and now face ruin due to the combination of privatisation and private equity."
Meanwhile, an investigation by the BBC has revealed that while councils in the south are investing money in adult social care, northern local authorities are taking it away.
Adult care spending in the north is to fall by 4.7 per cent within the next year, while that in the south is to rise by 2.7 per cent.
Posted by Nigel Murphy