DUDLEY Council has promised to ‘protect the interests’ of elderly residents who are living at Southern Cross homes.

Southern Cross, which runs Holbeche House and Wyncroft House in Kingswinford, Riverside, Wall Heath and Redbrick Court, Wordsley, is in financial meltdown and announced it could only afford pay landlords the full rent for its homes.

The company’s disastrous financial dealings before the Credit Crunch has left it prone to going into administration leaving residents in its care homes fearing for the future.

Dudley Council is working with the organisation to ensure no residents end up homeless.

Councillor Lesley Faulkner, cabinet member for adult and community services, said: "Dudley Council is aware of the current situation regarding Southern Cross Healthcare. “We are working with colleagues in health and other local authorities both regionally and nationally to ensure the interests of residents living in Southern Cross care homes across the borough and beyond are protected.

"We are therefore in regular contact with the owners of the care homes in the borough and are aware of the issues and concerns of those residents currently residing in them.” She added: “We'd like to reassure residents and their families that we will continue to support them as the situation unfolds."

Southern Cross announced at the start of this month it would unilaterally cut its rent payments by 30% for four months, in an effort to create a breathing space to restructure the business.

Southern Cross's chairman, Christopher Fisher, said: "The reality is that our problem is their [the landlords'] problem. Understandably, many landlords are cross and angry. There needs to be some give. Maybe that will be an equity proportion. It is very much in the melting pot."

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