SA disability employer Bedford Group to enter voluntary administration, affecting 1400 workers

The state’s most vulnerable are set to be hit hardest as the South Australian disability service enters voluntary administration with 1400 jobs at risk.

Bedford Group will enter voluntary administration, affecting more than 1400 jobs. Picture: Matt Loxton

The state’s second largest employer of people with disabilities is set to enter voluntary administration over the weekend, impacting more than 1400 workers across South Australia.

Bedford Group, a not-for-profit that has been operating in SA for 80 years, announced on Thursday it had made the “devastating” decision following negotiations with the state and federal governments and the National Australia Bank (NAB).

The company said it had in recent years been working to separate the organisation from the reliance on funding models related to the NDIS. while a founding member of the NDIS Board blamed “flawed” NDIS pricing for its demise.

It is expected to enter voluntary administration this Sunday.

Dave Hemer, Lauren Packham, Tim Bonnici, Jon Jones at Bedford in 2016. Picture: Sam Wundke

Chief executive Myron Mann said the company’s current employment model was no longer viable.

“It is an incredibly disappointing outcome not only for Bedford but for the national disability sector,” he said.

“Bedford has demonstrated clear intent to drive change and innovation to remain financially sustainable however the magnitude of challenges faced, particularly in relation to the supported employment model, remain complex to navigate and unprofitable for organisations.

“We remain steadfast in our commitment to supporting each of our clients, residents and staff during this challenging time.

“Bedford provides a haven for so many South Australians and has done so for the past 80 years.”

Zoia Tomlin, Tayla Morgan, Heather Jones and Tess Rogers packing showbags for the Adelaide and Melbourne Royal Shows at Bedford in 2021. Picture: Mark Brake

Bedford, headquartered on Goodwood Rd at Pasadena, employs people to work in a number of roles including manufacturing goods, landscaping, cleaning and hospitality.

Disability advocates have expressed shock following the announcement.

Dr Martin Laverty, a founding member of the NDIS Board, and current CEO of disability services provider Aruma, blamed “flawed” NDIS pricing as the reason for the company’s downfall.

“Flawed NDIS pricing has ended eighty years of community employment of people with disability in South Australia,” he said.

“1,200 people with disability, who until today were engaged in work, face uncertain futures.

“This crisis in disability employment could easily have been avoided had the NDIA moved to correct flawed price calculations sooner and been responsive to warnings from the not-for-profit sector that price faults would lead to charity collapses.”

Outside the company’s headquarters on Thursday, Don Kearvell was with his daughter, Alice, a worker who is impacted by the decision, told 7 News Adelaide that it “came out of nowhere”.

“There was no prior warning, no indication that there was any significant issue,“ he said.

Premier Peter Malinauskas will meet with Bedford Group leaders on Friday. Picture: Martin Ollman

“There have been work shortages, there’s no question about that.

“I would pay Bedford to have Alice come here. She bounds out of bed every morning to go to work ... no sleep-ins.”

Premier Peter Malinauskas said the state government would continue to work with Bedford Group, and that he will meet with company leadership on Friday.

“For some weeks, there have been active discussions between the state government and Bedford regarding its financial situation,” he said.

“We’re appreciative of the cooperative nature of discussions that have been happening to this point.

“The South Australian government has made offers of financial assistance to Bedford throughout this process and we look forward to those discussions continuing.

“The State Government’s first priority is the care and support of the people who rely on Bedford.”

A federal government spokesperson said Bedford Group had received more than $40 million in NDIS funding since April 2024, and that they were supporting discussion between the company and state government.

“The Government’s thoughts are with all of Bedford’s employees and those who rely on Bedford’s services for their care and support,” they said.

“The Australian government has been supporting the South Australian government’s discussions with Bedford in recent weeks.

“All registered providers delivering NDIS support are required to have arrangements in place to support continuity of support and services.”

The spokesperson said the government will work closely with Bedford Group and other stakeholders, to ensure “every person” receiving care and engaged in employment is informed about any changes impacting them.

Bedford Group has long packed showbags such as the Bertie Beetle one. Picture: Tricia Watkinson

Meanwhile, a spokesperson from NAB Bank Australia said their company had worked with Bedford Group for more than two decades and in recent weeks the company faced “several financial challenges”.

“NAB has partnered with the Bedford Group for more than 20 years, supporting the important work the company does across the South Australian community,” they said.

“NAB had provided the group with additional funding to support ongoing operations in the short term, whilst they have been engaging with state and federal government about their immediate financial needs.”

State opposition spokeswoman, Michelle Lensink called on both governments to “do all it can” to secure the future of Bedford.

“I am really sad to hear this news. Bedford has been a tremendous business that’s supported so many South Australian families for over 80 years,” she said.

“I sincerely hope that the company will make it through this difficult period so that it can continue to do so for many more years to come.”

Bedford Group said it would continue to seek a future that protects its clients, with dialogue to remain open between the company, and the state and federal governments until it enters administration.

Originally published as SA disability employer Bedford Group to enter voluntary administration, affecting 1400 workers