ELDERLY care home residents in Wordsley, Wall Heath and Kingswinford are facing uncertainty after it emerged healthcare company Southern Cross is in financial dire straits.

Southern Cross Healthcare runs Holbeche House and Wyncroft House in Kingswinford, Riverside in Wall Heath and Redbrick Court High Street, Wordsley.

The company revealed that due to financial pressures it might not be able to pay the rent on 750 care homes up and down the country.

Jamie Buchan, chief executive of Southern Cross Healthcare, said: “During the last several months, it has been a difficult trading environment for all care providers as commissioners such as Local Authorities grapple with the consequences of major budget cuts. Southern Cross has been particularly affected because of the kind of lease arrangements which underpin our business model.

“On March 14 we announced our rent obligations had become unsustainable and we planned to seek concessions from our landlords.

“I believe it is in the interests of landlords to reach an equitable solution with us to help stabilise our business and create the conditions for new investment in our homes.”

He added: “Our plan is to seek to renegotiate the terms of our leases by July of this year.

“Whilst we cannot guarantee success, our banks continue to support us and I am working hard to encourage commissioners, residents, relatives and other stakeholders to work with us as we shape our future.“ GMB union boss Paul Kenny outlined how important the care homes are to the fabric of local communities.

He said: “These 750 care homes aren’t failing factories. They are an essential part of every community.

Last week Coventry MP Jim Cunningham raised the Southern Cross crisis during Prime Minister’s Questions this week and David Cameron has promised to look into the situation.

For more information about Southern Cross Healthcare visit www.schealthcare.co.uk.