Somerset Care has announced the closure of its Polars care home in Newport in the Isle of Wight.
The care home provider said it was working with the council to find new homes for 29 residents before its closure on 12 September.
Chief Executive of Somerset Care, Dr Jane Townson, said: “Closing a care home is absolutely the last resort and is something we never do without long and careful consideration of all possible options.”
Jane blamed a combination of factors for the home’s closure, including increases in National Living Wage, pensions, insurance premium tax, regulatory fees, training levy, Council Tax and general inflationary rises; and high costs of maintaining an old building which is no longer fit for purpose, which resulted in operating losses for “a long period with no sign of improvement”.
The CEO added: “Unfortunately we cannot sustain loss-making services indefinitely without jeopardising the viability of the whole company.
“We are very sorry this decision has been necessary and our goal now is to ensure all residents are safely transferred to their new homes well before the final closure date.”
Polars made an operating loss of £ 167,236 in the last financial year to March 2017.
The home said it received council weekly fees of an average of £557 to cover a cost of care of £745.