Elderly residents at a County Durham care home, some of whom suffer from dementia, have been given 30 days to find new accommodation after bosses announced its sudden closure.

The company which operates Shotley Park Residential Home, has said rising operational costs, the increasingly price of energy and food, have made the business untenable.

It means 38 residents will have to find a new home and 63 employees will be out of work as the care home becomes the latest commercial casualty of the cost-of-living crisis.

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Concerns have been raised because some residents have lived at the grade II-listed building in the 13-acre site in Shotley Bridge for many years and several have complex healthcare needs.

Heartbroken staff were told of the shock news at emotional meeting at the home last Wednesday.

One care worker, who asked not to be identified, said: “This will have a massive impact on residents and it is devastating for staff because we have lost our jobs.

“I have not slept for the last few nights over it.

“The staff are so upset. Some of them at the meeting were sobbing and in tears.

“Staff and residents are shocked and stunned and are continuing to work through there shifts with heavy hearts, full of worry for the residents’ welfare never mind their own worries of employment.

“Personally, I think it will be impossible to find a suitable place for all of those residents within 30 days but that is the notice that has been given.”

The home has provided residential care in the region for 35 years under its current ownership.

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The company said the directors, who are themselves in their 80s and 90s, have recently provided additional capital to keep the residential care home open as they sought external investment or a possible sale of the business.

Bosses have now said the company is unable to continue to meet its financial obligations and can therefore no longer continue trading.

Specialist restructuring experts from FRP have been working with the directors and their representatives to oversee the winddown of the site and business.

The team from FRP is on site to support staff and is working with the local authority and Care Quality Commission to move the care of residents to alternative facilities.

Martyn Pullin, restructuring professional at FRP, said: “The directors have put in a tremendous effort to keep the home open over the years.

“Unfortunately, the pressures on Shotley Park’s finances have become too great and unsustainable and the business simply can’t continue trading any further.

“We understand that this will be a difficult time for residents and their loved ones, but also the dedicated staff at Shotley.

“We are working closely with the relevant authorities to ensure a smooth transition to new care and orderly conclusion.”

The original sandstone building at Shotley Park was built in 1850 and used to belong to the Priestmans, a family of industrialists who made their money by developing coal mines in the area.

It sits in the middle of a wooded conservation area opposite Shotley Bridge Cricket Club, on the A694, just outside the village.

Shotley Park Care Homes took over the building in 1987 and, while it privately owned, has a mixture of local authority and private residents.

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Neil Jarvis, Durham County Council’s senior commissioning delivery manager, said: “We were sorry to be informed of the planned closure of Shotley Park Care Home and appreciate this is a distressing time for all concerned.

“We have taken some immediate steps to support residents and staff.

“Our social care and commissioning teams have begun working to ensure residents are offered alternative accommodation if they need it and our Care Academy will also be supporting affected staff who wish to seek employment elsewhere in the sector.”