Southern Cross closure

Southern Cross has this morning, Monday 11 July, suspended share trading on the Stock Exchange.

The company says it will now start the process of an orderly closure of the business and is hoping to make sure that all 31,000 residents in its homes, spread across the country will not be affected.

The properties it holds will be offered back to landlords, many of whom are owed rent and/or have already agreed to a reduction in rental payments; or sold to new buyers.

The company chairman Christopher Fisher says his priority is to maintain the continuity of care for residents but the move will send shock-waves throughout the sector and cause consternation for many directors of adult services at local councils.

Critics will point to the ongoing problems with the company as reasons why care of the nation's older people should not be in the hands of businesses which, by definition, are set up to make profits and often do make mistakes or wrong-guess the way markets run.