The government has said it is monitoring the situation at Southern Cross Healthcare.
The company, the country’s largest private care home provider, last week announced it was in trouble and was taking steps to restructure its finances.
The company operates 750 homes across the country and employs around 41,000 staff.
Care services minister Paul Burstow said: “My officials and those at the Department for Business, Innovation and skills are talking to Southern Cross and KPMG, who are advising Southern Cross on delivering its restructuring plan.
“Officials are keeping a very close eye on the company and the steps it is taking. I will receive regular updates on progress.”
He added: “It is Southern Cross’s responsibility to deliver on the plan they have for turning round their financial difficulties. We are being very clear with them that we look to them to maintain service continuity and quality of care while they do this.
“My principal concern is for the safety and well being of the residents of the care homes that might be affected.”
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