The future for about 20 disabled adults in Devon is unclear after a care firm went into administration.
The company, Rotel, has two care homes, one in Torquay and one in Babbacombe, which will close within a month.
The adminstrator, Grant Thornton, said once the residents had been re-housed the 31 staff would be made redundant.
Because of "contractual matters" the residents had to be rehoused ahead of the closure, the firm said. Rotel has not commented.
Grant Thornton took over on 1 August, the day Rotel entered administration.'Anxious time'
Rotel has two care homes in Torbay, the Magnolia Lodge in Torquay and Overcliffe in Babbacombe, a domiciliary care unit, and a day care centre in the Torquay and Teignmouth areas, administrators said.
Grant Thornton said that once residents had been rehoused the premises would be marketed for sale.
The local NHS, the Torbay Care Trust, has described the situation as "regrettable".
The trust said it believed there was capacity in Torbay to provide care for those affected, but said it appreciated it was an anxious time for people.