The care home company that ran Winterbourne View has been put into administration.
The owners of Castlebeck announced on Tuesday evening that they had appointed Grant Thornton UK LLP as administrators.
Castlebeck operates 20 sites located in the Midlands, North East and Scotland, with a combined occupancy of 214 patients and residents that have high dependency learning disability and mental health needs.
A spokeswoman told Nursing Times the company employed 930 staff in total – equivalent to 850 full-time posts.
The Winterbourne View facility abuse incident led to the immediate closure of that hospital in mid-2011, which was followed by an internal review of Castlebeck’s operations.
But a statement released last night by Grant Thornton UK LLP said: “Whilst the board has focused on quality care provision and restoring confidence in the Castlebeck operations, the impact of two further unit closures in 2011 and reducing occupancy has significantly diluted Castlebeck’s subsequent trading capabilities.
“The board has considered a number of strategic options for its Castlebeck operations including a sale process. With a sale of the entire business to one purchaser unlikely to be achieved in the short term, the board has today accordingly appointed ourselves as administrators.”
It added: “A number of prospective purchasers have already shown their interest in acquiring the individual Castlebeck operating units, which will continue to operate and trade normally whilst such sales are progressed, and new owners for the operating units emerge.
“The Castlebeck care and nursing staff will work closely with the Administrators to ensure that the welfare of all patients and residents remains the priority.”
The Department of Health released a joint statement with the NHS Commissioning Board and the Association of Directors of Adult Social Services.
It said the ongoing care of patients and residents “will be the priority” and Castlebeck and the administrators were “committed to working with local commissioners to ensure safe transfer ownership of facilities and continuity of care for individuals”.