Financial woes prompt closure of rest home

ABBY GILLIES | 19th May 2010

A rest home that was subjected to an arson in January has closed its doors.

The Canterbury District Health Board appointed a temporary manager for Ashbridge rest home in February after "issues of concern" were identified in the home, which caters for 13 elderly people.

The board also undertook an "issues-based audit" at Ashbridge.

CDHB team leader planning and funding Toni Gutschlag said because of financial reasons, the Waikuku business closed last Friday.

"Due to a reduction in the number of residents and increased operational costs, the continued operation of the business is simply not viable at present," she said.

Residents have been relocated to other rest homes and together the owner and CDHB were considering selling the business, said Ms Gutschlag.

"It was always the intention to try and look after the best interests of the residents and that remains the focus," she said.

The rest home was the target of arson earlier this year, when two deliberately lit fires on January 10 destroyed two vehicles and a shed.

Rest home owner-manager Peter Fitt could not be reached for comment yesterday.

However, he previously blamed disgruntled staff and false allegations from residents' families for the facility being put into temporary management.