Feds pump more millions into Bedford as preferred buyer flagged
Millions of extra taxpayer dollars are being directed to ailing disability employer Bedford, as voluntary administrators are officially appointed in the more than $38m bailout.
The Federal Government has announced it is providing $13.2 million in extra funding to prop up beleaguered not-for-profit Bedford after it officially appointed voluntary administrators today.
This brings Federal Government funding of the struggling business to $17.6 million, on top of $15 million supplied by the state government, after the disability employment services company almost collapsed in July.
When the Federal Government contributed an extra $4.4 million in early October, Federal Disability and the NDIS Minister Mark Butler said the company’s financial position was so bad that “they can’t even operate from week to week”.
Today it was announced that not-for-profit disability services provider The Disability Trust was expected to be the preferred buyer of Bedford. This deal was endorsed by the Bedford board, and the deal remained subject to creditor approval.
The Disability Trust is a registered NDIS services provider and serviced clients in New South Wales, the Australian Capital Territory, Victoria and Queensland.
“The Disability Trust has a 50-year history as a reputable not-for-profit disability organisation and I’m pleased they’ve recognised the opportunities available in South Australia,” said Butler.
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Former Bedford CEO Myron Mann resigned over the company’s collapse, caused by mounting losses – $20 million since 2021.
The state government’s funding lifeline kept the company going, but today Bedford appointed McGrathNicol as voluntary administrators to oversee a sales process.
Administrators would continue operating all Bedford sites, ensuring continuity for the more than 1250 people who were employed by or received support from the business.
The Disability Trust CEO Karenza Louis-Smith said today was a “moment of real significance for South Australia”.
“The proposed acquisition protects the programs and supports that mean the most to people – the places where they work, learn, connect and belong,” Louis-Smith said.
“Bedford has stood for inclusion for generations, and we are proud to help carry that forward.”
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To ensure any sale could proceed, the state government today announced it would provide a portion of Crown Land at Bedford’s Panorama site to The Disability Trust for free. Premier Peter Malinauskas said the state government owned 60 per cent of the land, while Bedford owned the rest. In total, the site was worth about $6 million.
This would bring state government support to Bedford to $21 million, the government said.
The state and federal governments said Bedford’s largest creditor – National Australia Bank – had been supportive since July, and would work with the administrator on an outcome for the not-for-profit, ranked the 19th largest in the state.
Butler said the announcement was “wonderful news for families who rely on the organisation for employment and NDIS services and who have been deeply concerned about the future”.
“The government will continue to do everything possible to secure a good outcome for NDIS participants, Bedford employees and the wider community.”
Malinauskas said the collapse of Bedford “would have been unacceptable”.
“Now, through this carefully calibrated intervention and in partnership with the federal government, we have been able to arrive at a point where a sale is being progressed, and that the people with disability at Bedford can continue to work,” he said.
“Importantly, this isn’t any buyer, but a high-quality, long-standing and respected one, who will treat these workers with the dignity they deserve.”
Bedford said the support of the State and Federal governments “has afforded Bedford time to identify options that could ensure the continuity of job supports and services throughout this recent period”.
“We encourage our valued customers and suppliers to keep supporting Bedford, it underpins opportunities for people with disability in South Australia,” Bedford said.
