A major care provider which ran services across several regions has gone into liquidation, it has been confirmed.
Cleeve Link Homecare provided support to elderly people in counties including Somerset, Wiltshire, Oxfordshire, Worcestershire and Gloucestershire.
Local authorities are understood to have been informed about the liquidation by the Care Quality Commission (CQC) last week.
Councils moved to reassure those who received the services that care would continue in spite of the announcement.
Deborah Ivanova, the CQC’s deputy chief inspector of adult social care for London and the South, said: “[We are] aware of the financial situation of Cleeve Link Healthcare and we are currently in close liaison with the provider, clinical commissioning groups and the local authority commissioners.
“Our priority at this time is to work with stakeholders and commissioners to ensure that people using services remain safe and continue to receive a service that meets their needs.”
Hundreds of jobs are thought to be at risk as a result of the company’s collapse.
News about Cleeve comes after a number of warnings about the major financial challenges facing the care sector, with experts having predicted that many providers may have no choice but to enter insolvency in the future.
One of the key challenges is the mounting pressure on adult social care, greatly exacerbated by the UK’s rapidly ageing population.
The introduction of the National Living Wage – which has served to push up the wage bill at many care companies – is also thought to have compounded the difficulties.