Nearly 250 Angus residents could be left without support services with the closure of a care firm.
Care About Angus community interest company provided help to older people in their own homes with things like shopping, domestic tasks, laundry and companionship.
But the organisation will cease to operate in mid-August.
A statement confirmed 27 members of staff, who all live and work in Angus, will lose their jobs due to the closure.
Care About Angus ‘deeply sorry’ over closure
In a statement, Susan Wilson, director of Care About Angus, said she is “deeply sorry” about the closure.
She claimed the removal of grant funding from Angus Council and Angus Health and Social Care has left the company at “tipping point”.
Her statement added: “Along with Covid, mandatory pay rises and increasing business costs the board of directors has had a long hard look at the viability of the business.
“This has resulted in the very sad and regrettable decision to close Care About Angus.
We have received many letters from clients and their families expressing their sadness at the closure”
Care About Angus
“We are deeply sorry that we have had to take this action but a business which is person/people-centred needs long-term financial stability and support to allow growth which unfortunately, especially in the current economic climate, is not possible.
“We have received many letters from clients and their families expressing their sadness at the closure but appreciation for our staff and the service they have provided across the whole of Angus.”
A letter sent to service users confirmed the company will stop operating on August 18 and a 30-day consultation process is underway.
Care About Angus formed in 2015 after home help and tenancy services were transferred from Angus Council.
Company ‘received over £790k of support’
Gail Smith, CEO of the Angus Health and Social Care Partnership (AHSCP), said: “Care About Angus (CAA) first approached the AHSCP for financial assistance in 2018 and to date has received over £790k in either grant, Covid support or sustainability payments.
“This was on the condition that a recovery plan was put in place to improve its financial position.
“However, despite assistance, it has continued to operate at a loss and without additional financial aid from the AHSCP, would already have gone into voluntary liquidation.
“The AHSCP has always valued the services that CAA provided and has committed to cover staff redundancy payments.
“We are also working hard to ensure that all service users will receive alternative support.”
Angus Council has been contacted for comment.