THE regional director of a troubled care company insisted yesterday it was “business as usual” as staff and residents celebrated the renaming of their restaurant.

Phil Whitaker, regional director of Darlington-based Southern Cross, was at Lothian House care home in Spennymoor, County Durham, with the Shadow Health and Social Care Minister Emily Thornberry to officially open the newly-named Hillingdon Restaurant.

The company, which owns 750 care homes across the country, has been struggling to cope with a large and rising rent bill and declining fees from local authorities.

After signing lease agreements, some for up to 30 years, Southern Cross has seen rents rise faster than the fees it receives for residents’ care from local authorities, on which it is heavily dependent, leaving it in a critical financial position as it tries to negotiate rent cuts.

This has led to mounting concern among its 31,000 residents, their carers and their relatives.

Yesterday, residents relaxed in the sun as Mrs Thornberry, MP for Islington South and Finsbury, joined Mr Whitaker in cutting the ribbon to the restaurant, which was named after a pub which used to be next door to the home.

“Today it is very much business as usual,” said Mr Whitaker.

“It is well documented that we are negotiations with our landlords because we feel we are paying too much rent.

“All the parties involved are working well together and I am confident that we can come to a consensual agreement.

But the key priority for us is to look after all the people who live and work in our care homes.”

Mrs Thornberry said: “The rent situation and the Government cutbacks have added to the pressure being imposed on Southern Cross.

“Some will say that it is a private company and we should let them sort it out themselves, but there are 31,000 people living in these homes and the priority should be to make sure they are okay.

“We need to make sure lessons are learnt from Southern Cross.”

􀁧 A previous owner of Southern Cross Healthcare yesterday became the subject of protests in London.

The GMB union staged a demonstration outside the London Business School where Blackstone was one of the firms attending a twoday symposium on private equity.

The US private equity firm took control of Southern Cross in 2004, for £162m, and the following year it overtook Bupa as the country’s largest nursing home provider, after it acquired the rival Ashbourne Group for £85m.

In July 2006, the company was floated on the London Stock Exchange for £423m, with Blackstone selling its remaining stake in 2007, by which time it was believed to have quadrupled its initial investment.

Blackstone has faced criticism because it sold many of the Southern Cross Homes to new landlords and then leased them back.