The Federal Government has announced an additional $13.2 million in funding to support the struggling not-for-profit Bedford, bringing its total federal financial assistance to $17.6 million. This move comes after Bedford officially appointed voluntary administrators today, following a near-collapse in July. The state government has also contributed $15 million, raising the combined support to $38.6 million.
Earlier in October, Federal Disability and NDIS Minister Mark Butler highlighted the dire financial situation of Bedford, stating that the company was unable to operate on a week-to-week basis. The announcement today also included the expected acquisition of Bedford by The Disability Trust, a reputable not-for-profit disability services provider, pending creditor approval.
The Role of The Disability Trust
The Disability Trust, known for its extensive service across New South Wales, the Australian Capital Territory, Victoria, and Queensland, has been endorsed by the Bedford board as the preferred buyer. Minister Butler expressed optimism about the acquisition, citing The Disability Trust’s 50-year history of reputable service.
“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.
Former Bedford CEO Myron Mann resigned following the company’s financial troubles, which have resulted in $20 million in losses since 2021. The state government’s financial intervention has been crucial in maintaining operations, with Bedford appointing McGrathNicol as voluntary administrators to oversee the sales process.
Ensuring Continuity and Support
Administrators have committed to keeping all Bedford sites operational, ensuring continuity for over 1,250 employees and those receiving support from the organization. Karenza Louis-Smith, CEO of The Disability Trust, emphasized the significance of the acquisition 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 stated. “Bedford has stood for inclusion for generations, and we are proud to help carry that forward.”
In a further show of support, the state government has offered a portion of Crown Land at Bedford’s Panorama site to The Disability Trust at no cost. Premier Peter Malinauskas noted that this land, valued at approximately $6 million, is jointly owned by the state and Bedford.
Government and Community Support
The combined efforts of the federal and state governments have been pivotal in navigating Bedford through its financial crisis. National Australia Bank, Bedford’s largest creditor, has been supportive since July and is working with administrators to ensure a favorable outcome for the organization.
Minister Butler described the developments as “wonderful news for families who rely on the organisation for employment and NDIS services and who have been deeply concerned about the future.” He assured that the government would continue to strive for a positive resolution for all stakeholders involved.
Premier Malinauskas echoed these sentiments, stressing the importance of the intervention. “The collapse of Bedford would have been unacceptable,” he stated. “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.”
Bedford has acknowledged the critical support from both the State and Federal governments, which has allowed the organization to explore viable options for maintaining job supports and services. “We encourage our valued customers and suppliers to keep supporting Bedford, it underpins opportunities for people with disability in South Australia,” a Bedford spokesperson said.
The unfolding situation at Bedford underscores the challenges faced by not-for-profit organizations in maintaining financial viability while delivering essential services. The involvement of The Disability Trust offers a promising path forward, ensuring that Bedford’s legacy of inclusion and support continues to thrive.
