Lessons from Southern Cross

posted by
June 13, 2011
Adam Smith Institute
by Jan Boucek  
Posted in Commentary

"Southern Cross is the UK’s largest operator of care homes, looking after some 31,000 residents. It has run into problems due to an onerous rental bill and is seeking to avoid bankruptcy by a combination of selling some homes, laying off staff or renegotiating rents. Unsurprisingly, the GMB union is calling for the government (ie: taxpayers) to rescue the company. To his credit, Business Secretary Vince Cable has ruled that out. The problems of Southern Cross are of some concern but they don’t warrant any takeover by the government -- a bailout by any other name." (06/13/11)


Our Sponsors