Decision Follows Prolonged Financial Struggles
Disability support provider Bedford will enter voluntary administration on Sunday, 27 July. The company informed staff, clients, and families following an exhaustive negotiation process involving state and federal governments and commercial partner NAB.
Bedford confirmed that the decision would directly affect 1,400 people with disability across South Australia. The organisation has operated for 80 years and currently runs 22 sites across Adelaide and regional areas.
Bedford enters voluntary administration amid financial struggles
CEO Acknowledges Deep Impact
CEO Myron Mann said Bedford remained “steadfast in our commitment to supporting each of our clients, residents and staff during this challenging time”. He called the outcome “a devastating situation with vast personal impact”.
He noted that Bedford had attempted to remain financially sustainable by driving change and innovation. “The magnitude of challenges faced, particularly in relation to the supported employment model, remain complex to navigate and unprofitable for organisations,” Mann said.
NDIS Challenges Undermine Viability
In a staff email, Bedford outlined issues with operating under the NDIS. The organisation stated that nearly 70 per cent of registered NDIS providers had faced similar financial pressure since the scheme’s introduction.
The email explained that Bedford had a strong balance sheet with $47 million in net assets. However, cash flow constraints restricted the organisation’s ability to access working capital needed for sustainable operations.
The message noted that while the South Australian government had been supportive, federal assistance remained unavailable. “The Commonwealth government will not provide this aid,” the email said.
Federal Government Confirms Funding
The Australian government responded, stating Bedford had received approximately $43 million in NDIS funding since April 2024. A spokesperson said it had supported discussions with the South Australian government in recent weeks.
“The Australian government has been supporting the South Australian government’s discussions with Bedford in recent weeks,” the spokesperson said. “Bedford has received around $43 million in NDIS funding since April 2024.”
The spokesperson added that authorities would continue working with Bedford and stakeholders to ensure clients and supported workers received updates about any operational changes.
State Government to Continue Dialogue
South Australian Premier Peter Malinauskas said he would meet with Bedford on Saturday. “The South Australian government has made offers of financial assistance to Bedford throughout this process,” he said.
“The state government’s first priority is the care and support of the people who rely on Bedford,” Malinauskas added.
South Australian Premier Peter Malinauskas
NAB Highlights Short-Term Support
Bedford’s banking partner NAB said it had worked with the organisation over recent months. A spokesperson confirmed that NAB had provided additional funding to support short-term operations while Bedford sought further government assistance.
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Sector Faces Structural Issues
United Workers Union state secretary Demi Pnevmatikos said the broader disability sector was in crisis. “We’ll be supporting our members through that and working with Bedford in any way possible,” she said.
She explained that state government services often had to absorb responsibilities when large disability organisations faced collapse. “Bedford is one of many disability organisations that are struggling to make ends meet,” she said.
“They are struggling to be able to transition into an NDIS environment,” Pnevmatikos added. “Bedford was making an array of changes and restructuring the way that they were doing things.”
She said the organisation had fallen victim to “a system that is broken and that needs massive reform at a federal level”.
Strategic Projects Face Uncertainty
Bedford’s most recent annual report acknowledged a weak financial result for the year. The report stated the organisation had incurred heavy costs while targeting the opening of a $50 million advanced manufacturing and retail hub in Salisbury later this year.
It noted that the organisation was at the low point of its five-year strategy and expected future benefits from recent investment. Two acquisitions and ongoing restructuring were responsible for higher-than-usual operating costs.
Workforce of 1,650 to Face Transition
Bedford supports a workforce of 1,650 people, including staff and supported workers. Its role as Australia’s second-largest employer of people with disability now faces uncertainty as the voluntary administration process commences.
