Norfolk care group, Norse Care, has announced the closure of a residential care home facing a £1.2 million annual loss.

Norse Care said All Hallows, which has currently only filled 9 of its 48 placements, said the home was no longer fit for purpose due to the increasing care needs of residents.

Alison Holmes, business development director for Norse Care, which is owned by Norfolk County Council, said: “This decision has not been taken lightly. We recognise the changing care needs of the country, including the growing demand for more complex care and dementia care, and we want to best meet these evolving needs by focusing and investing where we can have the most significant impact.

“We have spoken with current residents, relatives, directly affected staff, and other local stakeholders.

“We will work to understand our residents’ priorities and preferences and will assist them and their families to identify and secure an alternative, appropriate care placement. Some of our care homes have vacancies, and residents will be offered a place in one of these in the first instance.”

Norse Care said All Hallows would require substantial investment to offer the quality of care residents deserve and was facing a £1.2 million annual loss.

The home will officially close on 31 January. Norse Care said it will support residents and families in finding the best relocation options and ensure that all involved feel fully supported.

A formal consultation is being held with staff and their representatives. Norse Care said it will support those pursuing new opportunities, aiming to redeploy existing employees to other Norse Care homes across Norfolk.