THE owners of two care York homes have gone into administration - but residents have been assured there are no immediate plans to close the homes.

Mimosa Health Care Group Limited, which operates Birchlands at Haxby and Moorlands at Strensall, is said to have been badly affected by the difficult economic climate and reduced occupancy levels.

BDO LLP business restructuring partners, Kerry Bailey and Sarah Rayment, have been appointed joint administrators over the Nottingham-based company.

A spokeswoman for the administrators said Mimosa ran 22 homes nationwide, providing approximately 1,000 residential and nursing care places and employing 1,172 people.

"The joint administrators will continue to trade the company via licensed agents with a view to effecting a sale as a going concern," she said.

Kerry Bailey said:“Regrettably, the difficult economic climate and reduced occupancy levels have significantly affected the company.

“Our first and main priority as joint administrators is to ensure continuity of care and provision for all residents living in Mimosa homes. We are working hand in hand with professional care operators to ensure this remains the case and that residents experience minimal disruption and worry.

“We are hopeful of securing a sale of the business and the company will continue to trade while all the options are explored. As such, all staff have been retained at this time, and our intention is to minimise any possible redundancies. We will also be liaising regularly with relevant stakeholders, including the Care Quality Commission, to ensure they are kept fully updated.

“Residents or loved ones with questions should contact their local home manager for further information.”

Kathy Clark, assistant director assessment and safeguarding at City of York Council, said it was aware of the proprietors going into administration, and had been in contact with the administrator to talk about the two homes.

"We are assured that there is no immediate risk to the residents and no immediate plan to close the homes," she said. "We will be working with the administrator closely over the next few weeks."