Authorities scramble to help Adelaide disability employer Bedford Group after 1400 jobs left on the line

State taxpayer dollars are on the table to help disability employer Bedford Group trade out of trouble, as the reason for its dire financial situation is revealed.

• Worker: ‘I feel shocked. Devastated’

Premier Peter Malinauskas says there is taxpayers’ “money on the table” as well-known SA disability business Bedford Group makes its case over the weekend to trade out of a financial disaster.

On Thursday, the not-for-profit that employs 1400 workers across 22 sites in South Australia, announced it had made the “devastating” decision to enter voluntary administration following negotiations with the state and federal governments and the National Australia Bank (NAB).

The organisation, which has been in operation since 1945, said it had in recent years been working to separate its business from the reliance on funding models related to the NDIS.

Bedford Industries in Panorama on Thursday. Picture: Matt Loxton

Bedford Group chair Janet Miller on Friday addressed concerns auditors flagged last year that the business that employs some of the state’s most vulnerable people was at risk of collapse.

Ms Miller said the group’s bid to diversify the business into social enterprises started in 2022 – including Cultivate Food and Beverage, Green Inc Landscape Construction and Dovetail Manufacturing – had failed to quickly create the funds “we had hoped”. 

“We made the decisions we made with absolutely the best interests of the clients and the people of Bedford at heart,” she said.

Bedford Group chair Janet Miller. Picture: Supplied

Federal Health, Disability and Ageing Minister Mark Butler said no federal money would be contributed to helping dig Bedford Group out of its dire financial position until a thorough investigation was completed into how it could “be in this level of financial strife”.

He said it must be ensured there was a responsible and viable pathway forward, adding that he was “deeply, deeply worried for the 1400 or so people” impacted.

Mr Butler said the “depths of this crisis cannot be understated” including how long it took management to make the government aware of the depths of the crisis.

Now he said an independent administration would look at stabilising the business “that’s what’s happened at Whyalla, (and) that’s what’s happened at the Healthscope hospitals”.

After an urgent meeting with the state and federal governments, Ms Miller believed “there’s a potential way forward”.

She said the group had made significant investments to create commercial enterprises that gave “open employment opportunities for people with a disability”.

The group’s annual report showed this included buying a commercial bakery, a commercial laundry, an electronic recycling operation and making a $12m investment in a purpose built advanced manufacturing facility.

It said the organisation needed to take these steps as it was at risk from growing pressure to abolish Australian Disability Enterprises including in recommendations from the Disability Royal Commission.

The report also showed Bedford Group had consecutive years of losses, including a $9.5m loss in 2023-24 and $3.2m loss in 2022-23.

Premier Peter Malinauskas says there is taxpayers’ “money on the table” for Bedford. Picture: Roy VanDerVegt

Most disturbing was news that Bedford’s auditor also warned of the group’s ability to continue operating as a “going concern”.

Following community backlash, discussions with the state and federal governments stepped up on Friday and Mr Malinauskas announced there were now undisclosed funds “on the table”.

“I’m hoping we can buy some time here, we will be working throughout the day and across the weekend,” Mr Malinauskas said.

A Bedford Group board member had earlier pointed some blame to changes in NDIS funding packages providing worker support.

It is understood that Bedford Group received $34m in 2022/2023, $30.7m in 2023/2024 and $33.5m in 2024/2025 for participant packages used for support in the workplace.

Casey Spehr, who has down syndrome, works four-days-a-week in packaging at Bedford’s Panorama site. Her mum Su has written to Premier Peter Malinauskas and Federal Employment Minister Amanda Rishworth to advocate on behalf of all affected employees. Picture: Ben Clark

Bedford Group worker of 19 years, David Stevens told FIVEAA that he was notified with other employees on Thursday when they arrived at work.

“We got a letter and we got into work yesterday and one of the staff was reading it yesterday, and it was very heartbreaking to tell it in front of us employees,” he said.

“It’s very heartbreaking to see how we are going to be losing our jobs.

“It’s been (a) wonderful (place to work), packaging, employees packing everything for the show … it’s been wonderful.”

On Friday morning, Mr Malinauskas told FIVEAA that the state government had kicked in money, although the responsibility was on the federal government to assist the not-for-profit.

“We as a state government have stepped in and we have put money on the table because I don’t want to see those people losing that opportunity to experience all the dignity work can provide,“ he said.

“But the challenge is, having Bedford got themselves into this situation they’re in, is state government money best used by supporting Bedford in its current form, and that runs the risk of good money going after bad.

“Or, is the state government assistance better supported making sure that Bedford’s got a clear plan for the future, either in administration or out of it.”

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 said it would it provided “additional funding” to support Bedford in the short-term, while discussion were underway with state and federal governments.

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

The organisation 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 Authorities scramble to help Adelaide disability employer Bedford Group after 1400 jobs left on the line