VITAL services for more than 100 vulnerable residents in Warrington could be disrupted as a home care provider faces uncertainty over its future.

Allied Healthcare is looking to sell or transfer its contracts, as well as staff, after the Care Quality Commission (CQC) raised concerns about the company's future due to its financial sustainability.

Warrington Borough Council confirmed Allied Healthcare delivers services for 104 people in the town.

The firm contracts with the council and Warrington Clinical Commissioning Group to provide the services.

The council confirmed it is monitoring the situation closely and is receiving regular updates.

"Last week, the CQC and Allied entered talks about the company’s financial sustainability," said a spokesman.

"The aim of the talks was to a secure a long-term agreement that would mean that care could continue to be delivered to the thousands of people nationally that rely on their care services.

"Allied has now issued a statement saying they are ‘actively exploring a range of options in order to minimise disruption to continuity of care, including the sale or transition of care and support services on a regional or contract-by-contract basis to alternative providers best placed to deliver care at a local level and that such sales or transitions will involve the transfer of staff’.

"Allied indicate that this process will be conducted in co-operation with their customers and they will work closely with the CQC and all commissioners of care to ensure that there is minimal disruption to the care provided across the UK while this transition takes place."

The spokesman also stated that continuity of care is the company's top priority.

He added: "As is always the case when safeguarding vulnerable people, we are working with our partners to put in place contingency plans that will ensure continuation of care for all residents who could be affected.

"The council is prioritising communication and reassurance directly with families and service users and will be issuing further updates when they are available.

"The council has been keeping daily contact with all relevant partners and is confident that Allied will continue to work hand in hand with our commissioners to ensure a safe transfer of the business.

"We will do all we can to make sure this transition is seamless and Allied are currently writing to all their customers to provide reassurance.

"To minimise disruption, the council is requesting and encouraging people using Allied services not to transfer to other providers as they anticipate the staff transferring with the care hours to an alternative company will be the safest and most effective route to maintain care.

"We value the excellent work that the carer team at Allied do and are doing all we can to ensure that local teams of staff will continue to work together under any new arrangements, limiting disruption to them personally and those they care for."

Allied Healthcare has also issued a statement.

A spokesman said: “The stage six notification has negatively impacted Allied Healthcare, leading a number of customers to transfer care services to alternative providers and disrupting staff retention and recruitment.

“These developments have intensified the impact of the challenging environment within which we operate and come immediately prior to the Christmas period, when pressures on care providers are at their highest.

“This has also meant that we have had to re-evaluate our long-term business plan.

“We are therefore actively exploring a range of options in order to minimise disruption to continuity of care, including the sale or transition of care and support services on a regional or contract-by-contract basis to alternative providers best placed to deliver care at a local level.

“Such sales or transitions will involve the transfer of staff.

“This process will be conducted in close co-operation with our customers.

“We continue to trade safely while this process is underway.

“RBS, as our existing lender, has agreed to extend our current credit line by up to three weeks beyond November 30, enabling us to deliver safe continuity of care while we explore and implement these options.

“We will work closely with the CQC and all commissioners of care to ensure that there is minimal disruption to the care that we provide across the UK while this transition takes place.

“Continuity of care is our number one priority.”