Nursing homes group faces cash flow crisis

A company which runs two nursing homes in Oldham is facing tough times as its share price plummets.

Southern Cross Healthcare (SCH) is the UK’s biggest care homes operator and is responsible for 44 Greater Manchester care homes including Treelands in Fitton Hill and Avalon Care Home, Oldham.

Shares in Southern Cross dropped last week to just over 6p, less than 10 per cent of the price they were floated for in 2006. The company’s problems were raised at Prime Minister’s questions in the Commons.

Commons leader Sir George Young said civil servants were in talks with the company about plans to deal with their financial struggle.

GMB union general secretary Paul Kenny said: “These care homes are not factories that are failing from lack of demand but are an essential part of every community which now face ruin due to the combination of privatisation and private equity.”

Phil Whitaker, regional director for SCH, said he wanted to reassure people that care home residents do not face being made homeless. He added: “Like all independent care providers, we continue to face challenges because fewer people are being placed in our homes by local authorities. We are taking decisive action to ensure our business remains sustainable.”