Four Seasons Health Care, one of the country’s largest care home groups, has gone into administration.
The company owns and runs more than 300 care homes across the United Kingdom, serving around 17,000 residents and patients and employing an estimated 20,000 staff.
Two of the holding companies behind the firm appointed administrators on Tuesday (30 April) after struggling to repay their debts, the BBC reported.
What does this mean for those in care?
Four Seasons has said the move would not affect care arrangements and will not lead to the closure of homes.
The company has struggled following cuts to local authority care fees and as a result of the rise in social care costs and has warned in the past of its long-term stability.
Group medical director Dr Claire Royston told the BBC, “Today's news does not change the way we operate or how our homes are run or prompt any change for residents, families, employees and indeed suppliers.
"It marks the latest stage in the group's restructuring process and allows us to move ahead with an orderly, independent sales process."
What happens next?
The BBC reports that around a fifth of Four Seasons’ operations are privately funded, meaning the majority in their homes do not pay for their care.
If a resident has their local authority paying for some or all of their care, it is the council’s responsibility to find them a new home or a new care provision.
If you pay for your Four Seasons home privately, you will need to find a new home, but the council may suggest different options and help ensure you get suitable accommodation.
This article originally appeared on our sister site, Edinburgh Evening News