HUNDREDS of office workers facing an uncertain future at the headquarters of Southern Cross Healthcare are expected to retain their jobs providing services to the new operators of its homes.

Since announcing in July it was closing the business, the Darlington based firm has been in negotiations with the landlords of its 752 care homes, in the hope they would take over the running of the majority of them.

Although staff working in the affected homes are expected to continue on the same terms and conditions, the future of around 200 back-office employees at the Archer Street headquarters has been less clear.

The Northern Echo now understands it is expected that the majority of those staff will continue to provide support services for the new operators.

Further details on the transfer of homes and operations to landlords is expected to be revealed by next Wednesday.

It follows Southern Cross announcing this week that it has reached agreement with its lenders on an extension to its banking facilities until that date.

In a statement to the London Stock Exchange it added: "The restructuring process progresses and Southern Cross expects to make a further announcement within the timeframe of the banking facilities extension."

Control of the homes will transfer to the landlords broadly in two tranches - one on September 30 and the remainder on October 31.

The future of 54 Southern Cross homes left with no potential operator after landlord Loyds went into administration, is also expected to be resolved shortly.

Four Seasons Healthcare, employing 200 people at its offices in Lingfield Point, Darlington and which is due to take back control of 43 care homes it leased to Southern Cross, has been in negotiations with administrator Grant Thornton to buy the Loyds properties and it is understood those talks are progressing well.

Southern Cross, which is responsible for the care of 31,000 predominantly elderly people, revealed in May that it was in a "critical financial position."

The financial difficulties had left it trying to negotiate rent cuts with its landlords since September last year.

Agreements with landlords that it signed five years ago, some for up to 30 years, had seen rents rise faster than the fees it received for residents' care from local authorities, on which it was heavily dependent.

As well as its head office the firm employs 6,000 across its 100 North-East homes.