Two care homes in Liverpool, which opened less than a year ago, are to close after the provider Shaw Healthcare said they were unable to find a long-term solution to the financial problems caused by the coronavirus pandemic.
The move means that the families of 83 residents in the care homes will have to find new accommodation for their elderly relatives.
The Brushwood home in Speke and the Millvina in Anfield were opened in October last year with Mayor of Liverpool Joe Anderson saying the homes were a key part of the council's 'invest to save' strategy, easing pressure on other health services in the city.
The homes were purpose-built to care for people with dementia.
Shaw Healthcare said in a statement: "The COVID-19 pandemic has had a significant impact on the UK and the care industry has been badly affected by this deadly disease.
"We operate Millvina House and Brushwood on a leased basis from Liverpool City Council with additional costs such as staffing and the provision of equipment also being met by us.
"Since the start of the pandemic, we have made significant and unsustainable losses brought on by the change in market conditions as a direct result of Covid-19."
They also said that the 132 staff members who work in the care homes will be put on a 45 day consultation period.
Martin Emmett, who's mother Dorothy lives in one of the homes, said: "We were led to believe this place was what you call a forever home, the place where my mum was settled and it was going to be her home forever."
The council have built this with our money, our tax money, they've entered into negotiations with Shaw Healthcare to run it on their behalf. Shaw Healthcare is a billion-pound company - they can take the rough with the smooth.
A campaign is being launched by family members of the residents of the two homes, with petitions and marches planned.