Disability support service and employer Bedford will go into voluntary administration in the coming days.
In a statement it said that, after an “exhaustive negotiation process with the state and federal governments, banking and commercial partners NAB”, it had advised its clients, families and staff that the organisation was expected to enter voluntary administration on Sunday, July 27.
The statement said the “heartbreaking” move would “directly impact 1,400 people with disability across South Australia”.
Bedford CEO Myron Mann said it 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,” he said.
“Bedford provides a haven for so many South Australians and has done so for the past 80 years.
“It is an incredibly disappointing outcome not only for Bedford but for the national disability sector.”
He said the organisation had tried to drive change and innovation to remain financially sustainable, but “the magnitude of challenges faced, particularly in relation to the supported employment model, remain complex to navigate and unprofitable for organisations”.
According to its website, Bedford is the second-largest employer of people with disabilities in the nation, and has 22 sites across Adelaide and regional South Australia.
The service provider was established in April 1945 and has this year been celebrating its 80th anniversary.
The most recent annual report published on Bedford’s website states that the “financial result for the year is not strong on paper”.
Its financial summary for 2023/24 noted the company “incurred heavy costs” but was still “on target” to open its new $50 million advanced manufacturing and retail hub in Salisbury this year.
“All combined, the year finished with an anticipated loss,” it states.
“As we approach the midpoint of our five year strategy to become financially sustainable, we are at the low point and the benefits of heavy investment will be incrementally realised in the forward years as our new manufacturing facility comes online and the new social enterprises mature.
“The necessary restructure has required both capital and operating investment and two major acquisitions resulted in higher than normal operating expenses.”
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