Deal secured for care homes

THE FUTURE of a Kilburn care home for the elderly has been secured until October after its crisis-hit owners struck a deal with its landlords.

Kilburn Care Centre, on Dale Park Avenue, is one of 17 care homes owned in Derbyshire by Southern Cross Healthcare, Britain’s largest care home operator.

The company spiralled into crisis after receiving a rent bill of £250m, and has now negotiated a deal with landlords under which no care homes will be closed in a transition period that will last until at least October.

The landlords’ committee, which represents the 80 landlords who own the company’s 751 care homes, met with Southern Cross and were due to work out the details of the agreement. The landlords were expected to propose schemes under which they will accept long-term reductions in rent as long as the government and banks write off some of the money they are owed by Southern Cross.

The proposals may also allow for landlords to take back their properties and find other operators for them.