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Deadline for Southern Cross homes missed

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Southern Cross residents have been left in limbo after a deadline to appoint new care home operators was missed.

The company was the UK’s largest care home operator but ran into crippling financial problems earlier this year due to a combination of a rising rental costs and falling income.

The group tried to negotiate a deal with its landlords but all 80 of the owners of its properties decided to walk away from the group, forcing it to announce it would shut down

All landlords who left the troubled company were due to appoint new operators of their 750 care homes by August 1 but his process has not been completed.

The complete transfer of all former Southern Cross care homes was to be completed by the end of October but the GMB union, which represents care workers, said it will now be impossible to meet this target.

Together, Southern Cross care homes house 31,000 elderly and vulnerable residents and employ 42,500 staff.

In Dundee, Ballumbie Court, Pitkerro, Riverside View, and St Columba’s care homes all must appoint new operators.

There are also seven affected care homes in Fife: Adam House and Chapel Level in Kirkcaldy, Balfarg, Lomond Court and Woodside Court in Glenrothes, Forth View in Leven and the Beeches in Dunfermline.

Barry Fletcher, GMB regional officer for care staff in Scotland, said the situation must be resolved soon.

He said: “The shambles that is Southern Cross rumbles on because apparently the landlords still cannot get their act together after pulling the plug last month on Southern Cross.

“Quite why the landlords as the owners of the buildings should be running the show is as mysterious as it is unacceptable.

“Surely national government and elected councillors, on behalf of the taxpayers who fund 80% of the bills, should be in driving seat.”

A Southern Cross spokeswoman said the company could not discuss the transfer procedures while confidential negotiations with potential new operators are under way.