Disability employment provider Bedford will avoid entering voluntary administration for now, with the state government offering a $15 million lifeline to the organisation.

Bedford had flagged on Thursday that it would enter administration on Sunday unless it was given a financial lifeline.

Premier Peter Malinauskas said a “comprehensive” rescue plan has now been developed to “stave-off” the organisation going into administration. 

Bedford has 22 sites across Adelaide and regional South Australia.

It is understood the organisation employs over 800 staff and supports 1,400 people living with a disability.

“It was not an acceptable proposition from the South Australian government’s perspective that Bedford would go into administration this morning,” Mr Malinauskas said.

“Had Bedford gone into administration this morning, it would have been done in an unplanned way without any contingencies in place for the South Australians we care about most.”

Mr Malinauskas said Bedford’s chief executive officer, Myron Mann, has resigned.

The SA Premier said it was the government’s view that a change in management was required “in order to have confidence that we are able to give Bedford its best shot of having a secure future going forward”.

The government has also appointed advisory and restructuring firm McGrathNicol to “actively start getting to work on restructuring that business”, Mr Malinauskas said.

As part of the $15 million rescue package, the state government will acquire a supported accommodation site owned by Bedford in Clapham.

The site, known as Balyana, houses 40 people in supported accommodation, the Premier said.

“The transfer of that ownership secures the site but also provides a greater degree of security for the people that live there,” Mr Malinauskas said.

“It is well known that those facilities are approaching end of life, they’re approaching a state of not being fit for purpose, so a transition at some point will be needed.

“But had we not entered into this rescue package and this intervention, those residents would have woken up tomorrow without any security of their future whatsoever.”

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