Major disability employment services provider to collapse

Australia’s second-biggest employer for people with disability will go into voluntary administration on Sunday, after 1400 people.

Bedford – an 80-year-old South Australian disability employment services provider – announced the move on Thursday.

The company is Australia’s second-largest employer of people with disability, and its decision to appoint administrators is expected to “directly impact 1400 people with disability across South Australia”.

The “heartbreaking decision” comes after Bedford “spent recent years firmly focused on innovation to decouple the organisation from the reliance on funding models related to the NDIS”.

It said it advised clients, families and staff of the decision early on Thursday, “following an exhausting negotiation process with the state and federal governments, banking and commercial partners NAB”.

“Bedford leaders continue to seek a future which protects our clients, residents and staff and dialogue remains open with the federal government and relevant partners,” Bedford said.

“Our people remain our priority and today we advised all those potentially impacted of the organisation’s likely position as of Monday.”

CEO Myron Mann said Bedford remained “steadfast in our commitment to supporting each of our clients, residents and staff during this challenging time”.

“It is a devastating situation with vast personal impact. Bedford provides a haven for so many South Australians and has done so for the past 80 years,” he said.

“It is an incredibly disappointing outcome, not only for Bedford but for the national disability sector.”

Mann said the company demonstrated “clear intent to drive change and innovation to remain financially sustainable”.

However, the magnitude of challenges faced, particularly in relation to the supported employment model, remain complex to navigate and unprofitable for organisations,” he said.

SA Premier Peter Malinauskas said there had been weeks of “active discussions between the state government and Bedford regarding its financial situation”.

“We’re appreciative of the cooperative nature of discussions that have been happening to this point,” he said.

“The South Australian government has made offers of financial assistance to Bedford throughout this process and we look forward to those discussions continuing.

“The state government’s first priority is the care and support of the people who rely on Bedford.”

Malinauskas will meet Bedford management on Friday.

This story first appeared in InDaily. Read the original here