The chairman of Darlington based care homes group Southern Cross, has resigned from his role.

The decision by Ray Miles to step down after three years in the role, comes as the firm undergoes a financial restructuring.

Last month it announced that it was in danger of breaching its banking covenants, the conditions imposed by its lenders.

This was attributed to rents it pays to landlords, agreed five years ago, rising faster than the fees it receives for residents' care.

Mr Miles said: "Given that my own experience has mainly been building businesses and improving their operational performance and that the company now faces a period of intense financial restructuring, it is time to hand over to others with more experience of this.

"I have huge admiration for the management team and the many excellent people who work in Southern Cross and wish them well in these difficult times."