ONE of Southern Cross Healthcare’s major landlords wants to take back control of its homes.

Bondcare has also suggested the same solution to other landlords of the Darlington-based firm’s 750 predominantly leased homes, in order to preserve the care of its 31,000 residents.

The financial difficulties at Southern Cross have left it trying to negotiate rent cuts with its landlords since September.

It came after agreements it signed five years ago, some for up to 30 years, have seen rents rise faster than the fees it receives for residents’ care from local authorities, on which it is heavily dependent.

Having admitted last month that it was in a critical financial position and could not afford to meet its future rent obligations in full, on Tuesday the group was granted four months of breathing space by its landlords, during which time it will defer 30 per cent of its monthly rental payments.

However, Bondcare, one of Southern Cross’s five largest landlords and a care home operator itself, said in its view a longer term rent reduction would not solve the underlying problems at Southern Cross, which is also dependent on a £50m credit facility from its banks that is only guaranteed to June 30.

Last night, a spokesman for Bondcare, which owns 39 of the group’s homes, said: “Our only concern is for the care of the residents.

“Our suggested solution is to take back the operation of our homes and we have offered the same solution to other landlords to deal with this crisis.

“To date, we have not got past first base with Southern Cross in relation to this proposed solution, despite being in negotiations with them since December.”

Southern Cross employs more than 200 people at its base in Archer Street, Darlington, and a further 6,000 across 100 North-East homes.