A Dundee care home is facing closure after more than 50 years with dozens of residents and staff affected.
A consultation has been launched with workers over plans to close St Margaret’s Home on Victoria Road.
It comes after the board of trustees from the Scottish Episcopal Church, which owns and runs the home, said it was no longer economically viable.
A total of 25 residents are living at the home, which employs 21 full-time staff and several other part-time workers.
Bosses informed families and workers of the plans to close the home on Tuesday.
St Margaret’s Home occupancy level ‘below break-even point’
A consultation with workers has been launched with a final decision expected in the next few weeks.
However, St Margaret’s bosses are already working with health officials to find residents new homes.
Bishop Andrew Swift said: “Despite the commitment of the current staff team, the trustees have had to make the extremely difficult provisional decision to close the care home, subject to a collective consultation process with staff over redundancies.
“There are a number of factors that have led us to this decision.
“These include the ever-increasing costs that the home has had to absorb, sector-wide recruitment issues leading to a reliance on agency staff during and immediately after Covid and, most crucially, over the last 12 months, we had an occupancy level well below our break-even point.
“As a not-for-profit charity, our aim has always been to try and generate a small surplus which we could then reinvest in upgrading the care home.
“Unfortunately, over the last four to five years the home has run at a deficit and as such our reserves have dwindled to an unacceptable level.
“We do not have the reserves to invest in the home or to absorb the continuing monthly shortfall in cashflow.”
He added: “The continuing care of our residents is a primary focus, along with consultation with staff over the future.”
The board says it is working with Dundee Health and Social Care Partnership to support residents in finding a new home.
Families contacted over St Margaret’s Home closure proposals
Families will be contacted over the next few days to discuss their relatives’ needs.
Last year, St Margaret’s was required to make improvements after “unacceptable” levels of cleanliness were found by inspectors.
Addressing that report, Bishop Swift said: “Due to the excellent attitude and ability of manager Tina Harris and the staff, we came out of the investigation in record time.
“We were able to demonstrate the improvements made within the home at follow-up inspections.”
If the home closes, it is expected that the building – which dates from the 1970s – will be put up for sale.
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