THE cash-strapped company that owns a care home in Prestwood has gone into administration.

Elderly residents at The Homestead were advised to consider alternative accommodation when concerns were raised about the financial viability of owners, Elysian Care Limited.

After receiving reports that staff had not been paid, Staffordshire County Council stepped in to pay wages and resolve other issues to ensure the Wolverhampton Road home could remain open.

Despite best efforts to find a solution, on Friday (October 17), Diana Frangou and Dilip Dattani of Baker Tilly were appointed joint administrators.

The company, which also owns Knoll House residential home in Penn, had been suffering financial difficulties, which resulted in restrictions in its ability to continue to operate the homes in the immediate term.

Ms Frangou, a restructuring and recovery director at Baker Tilly, said: "The residents of Knoll House had been moved by the company to alternative accommodation prior to the appointment of administrators. Our key priority now is to ensure that The Homestead continues to operate efficiently with the minimum of disruption to the residents whilst suitable alternative accommodation is being sought.

"Should residents or their relatives have any questions, they should contact The Homestead’s manager. In the interim period, we will be working closely with the local authority in Staffordshire and will be supported by a specialist healthcare management company."

Councillor Mark Sutton, Staffordshire County Council’s cabinet support member for social and health care, said: “Council employees have met the administrators and we are all agreed that our first priority is ensuring a continuity of care for the residents.

“Despite it being a step not taken lightly, we have already recommended that, in view of the circumstances, residents look for another home.

“Despite the change in circumstances there is no time limit to move residents, as their wellbeing is paramount and we are looking at everything on a case-by-case basis and discussing matters with them and their families.”

Although care home staff still work for Elysian Care Ltd, after talks between the administrator and the council, they will receive payment to ensure care continues uninterrupted.

Cllr Sutton added: “We stepped in to ensure residents are looked after and by supporting staff, who have been tremendous, we allow the administrator time to assess the situation and look after everyone's interests.”