AN Edmonton care home will continue to be run by troubled firm Southern Cross for the next four months while a permanent solution is thrashed out.

The fate of 752 homes across the UK managed by the company was discussed at a summit meeting yesterday with landlords and financers, amid fears of a collapse of Southern Cross.

Among the homes is Sunbridge Care Centre, in Hickory Close, Edmonton, which care for up to 43 elderly and vulnerable residents.

A deal has been struck to give Southern Cross four months breathing space to address its financial difficulties, having posted losses of £311m in March.

It is ultimately expected landlords will walk away from the operator, opting to take control of the home themselves, but no announcement has yet been made on that front.

A statement from Southern Cross said: “At a meeting today, Southern Cross, its lenders and the Southern Cross Landlords' Committee reached an agreement to ensure that the continuity and quality of care to all 31,000 residents will be maintained and that every resident will continue to be well looked after."

The Darlington-based firm, the UK's largest care home operator, has been struggling under a £202m annual rent burden while its own income falls as public sector customers, such as local authorities, make cutbacks.

The company, which employs 44,000 staff, recently revealed plans to cut 3,000 jobs. These include more than 300 nurses, while 1,275 care staff, 700 catering posts, 440 domestic jobs and 238 maintenance roles could also go as part of its business revamp launched 18 months ago.