Struggling care home provider Southern Cross has confirmed it is to close.

The embattled company which is Britain's largest care home provider and has seven homes in North Yorkshire including York has said it is working on the "orderly closure" of the group after the landlords of its properties abandoned the company.

There has been uncertainty surrounding the fate of the company which has 752 homes and 31,000 residents while it has been in negotiations over a restructuring of the group's property arrangements.

It says it is now working on a plan to facilitate the transition of homes to new landlords and their new operators.

Southern Cross said in a statement today that it would ensure that its 31,000 residents would continue to be cared for, and the interests of the employees of its care homes safeguarded. However, shareholders would receive little or nothing, the company said.

Chief Executive Jamie Buchan said: "My objective, and that of my team, is to continue to provide excellent care to every resident and to manage the programme of transition professionally.

"All 44,000 staff can take pride from the significant operational turnaround and improvements in care delivery which have been achieved over the past two years."

Southern Cross provides residential and nursing care for elderly and vulnerable people. It has been hit by government cuts, falling admissions and rising costs.

More to follow.