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Friday, 10 September 2010

Cuts to public spending hit Care Homes

This article in the Guardian highlights how cuts to local authority spending is affecting Southern Cross - the UK's biggest Care Home operator http://www.guardian.co.uk/business/2010/aug/09/southern-cross-care-home-profits.

The group's solution is to sell off the freeholds of their homes and lease them back http://www.nebusiness.co.uk/business-news/latest-business-news/2010/04/22/southern-cross-home-group-s-bid-to-be-debt-free-51140-26291819/.
which is the same strategy as Woolworths took before going into administration.
http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/3699784/Comment-Woolworths-comes-full-circle.html

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