July 24, 2025 – The Bedford Group, a cornerstone of disability support and employment in South Australia, has announced it will enter voluntary administration on Sunday, July 27, 2025. This decision, described as “heartbreaking” by Bedford’s CEO Myron Mann, follows exhaustive negotiations with state and federal governments and banking partner NAB. The move will directly impact 1,400 people with disabilities and a workforce of 1,650 across the state, raising concerns about the future of disability services in the region.
Bedford Group’s Legacy in Disability Support
For 80 years, the Bedford Group has been a vital force in South Australia, evolving from a small workshop aiding tuberculosis patients in 1945 to becoming the second-largest employer of people with disabilities in Australia. Operating across 22 sites, Bedford provides employment, training, and social programs, supporting nearly 1,400 clients through initiatives like the Ottoway Recycling Hub, Beacon Laundry, and Dovetail Advanced Manufacturing. Its $50 million strategic plan aimed to foster financial sustainability through innovative social enterprises, including a new advanced manufacturing and retail hub in Salisbury.
However, the organization has faced significant financial challenges, particularly since the introduction of the National Disability Insurance Scheme (NDIS). In an email to staff, Bedford cited cashflow issues and an inability to secure sufficient working capital as key factors leading to this decision. Despite a strong balance sheet of $47 million in net assets, the organization has struggled to navigate the complexities of the NDIS funding model, a challenge faced by nearly 70% of registered NDIS providers.
Why Voluntary Administration?
The Bedford Group’s decision to enter voluntary administration stems from prolonged financial strain. Despite receiving $43 million in NDIS funding since April 2024, the organization has been unable to secure the additional support needed to remain operational. Negotiations with the South Australian and federal governments have not yielded the necessary financial backing, with the federal government unwilling to meet the state’s requirement to fund half of Bedford’s operational needs.
Bedford’s banking partner, NAB, has provided short-term funding to support operations, but this has not been enough to address the organization’s cashflow constraints. The 2023/24 annual report highlighted heavy costs and an anticipated loss, even as Bedford invested in innovative projects to reduce reliance on NDIS funding. CEO Myron Mann emphasized the organization’s commitment to supporting clients and staff during this transition, calling the situation “devastating” for both Bedford and the national disability sector.
Impact on South Australia’s Disability Community
The announcement has sent shockwaves through South Australia, with 1,400 people with disabilities and 1,650 employees facing uncertainty. Bedford’s services, including employment in hospitality, manufacturing, and horticulture, as well as NDIS-approved support programs, have been a lifeline for many. The closure of operations, even temporarily, could disrupt the lives of clients who rely on Bedford for meaningful employment and social inclusion.
South Australian Premier Peter Malinauskas has expressed concern and confirmed he will meet with Bedford on July 25, 2025, to discuss potential solutions. The state government has offered financial assistance, but its support is contingent on federal funding. The federal government, in turn, has pledged to work with Bedford and stakeholders to ensure those receiving care and employment are informed about changes.
What’s Next for Bedford Group?
As Bedford prepares to enter voluntary administration, its leadership remains committed to finding a path forward. The organization is continuing discussions with the federal government and other partners until the July 27 deadline, hoping to secure a solution that protects clients, residents, and staff. The new $50 million Salisbury hub, set to open this year, represents a significant investment in Bedford’s future, but its completion may now be at risk.
The broader implications for the disability sector are profound. Bedford’s challenges highlight the complexities of the NDIS funding model and the need for sustainable financial frameworks to support disability service providers. As one of Australia’s largest employers of people with disabilities, Bedford’s potential collapse could set a troubling precedent for the sector nationwide.
Community and Industry Response
Posts on X reflect the community’s shock and concern, with users like @7NewsAdelaide and @9NewsAdel reporting the news and emphasizing its impact on South Australia’s disability community. @PMalinauskasMP underscored the state government’s priority to support those affected, signaling active engagement to address the crisis. These sentiments underscore the urgency of finding a resolution to preserve Bedford’s vital services.
For those seeking more information, Bedford’s official website (www.bedfordgroup.com.au) provides updates on its services and the administration process. Stakeholders can also contact Sam Hunter at shunter@bedfordgroup.com.au or 08 8275 0211 for direct inquiries.
Conclusion
The Bedford Group’s entry into voluntary administration marks a critical moment for South Australia’s disability sector. As negotiations continue, the focus remains on protecting the 1,400 clients and 1,650 employees who depend on Bedford’s services. With a legacy spanning 80 years, Bedford’s commitment to empowering people with disabilities remains unwavering, but its future hinges on securing sustainable funding. Stay tuned for updates as this story develops.
Bedford Group, voluntary administration, disability support, South Australia, NDIS, Bedford Industries, disability employment, Myron Mann, financial challenges