The owner of 22 care homes across England has entered administration.
Mimosa Health Care Group employs 1,172 staff across 22 homes that care for the elderly, including the disabled and those affected by dementia.
Approximately 1,000 residents are currently housed in Mimosa homes.
Administrators will continue to trade the company via licensed agents with a view to affecting a sale as a going concern, but have not ruled out possible redundancies.
Kerry Bailey and Sarah Rayment of BDO LLP were appointed as joint administrators to the company on 24 March 2014.
Bailey, joint administrator and BDO business restructuring partner said: “Regrettably, the difficult economic climate and reduced occupancy levels have significantly affected the company.
“Our first and main priority as joint administrators is to ensure continuity of care and provision for all residents living in Mimosa homes. We are working hand in hand with professional care operators to ensure this remains the case and that residents experience minimal disruption and worry.
“We are hopeful of securing a sale of the business and the company will continue to trade while all the options are explored. As such, all staff have been retained at this time, and our intention is to minimise any possible redundancies.
“We will also be liaising regularly with relevant stakeholders, including the Care Quality Commission, to ensure they are kept fully updated.”
An alcohol rehabilitation centre owned by the company has also entered administration.