A care home is preparing to close in January after it was revealed the facility was losing £1.2m annually and only had nine residents.

Norse Care said All Hallows in Bungay needed "substantial investment" and "was no longer fit for purpose".

It will be officially closed on January 31 and Norse Care says it will support residents and families in finding the best relocation options and ensure that all involved feel fully supported.

The home has 48 beds and provides nursing care for older people - yet only has nine residents.

A statement from Norse Care announcing the closure said: "The building is no longer fit for purpose and limits Norse Care's ability to deliver high-quality care within this establishment.

"All Hallows would require substantial investment to offer the quality of care residents deserve and allow staff to deliver the duty of care we believe and strive to provide to all our residents across all our care homes, and currently is facing a loss of 1.2m annually."

The announcement comes after the CQC in its most recent inspection of the home said it "requires improvement".

READ MORE: Bungay care home pauses admissions after scathing CQC report

Beccles & Bungay Journal: All Hallows will close on January 31All Hallows will close on January 31 (Image: Bruno Brown)

Alison Holmes, business development director for Norse Care, 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.”

READ MORE: Family searching for new care after Bungay home cancels plan

Beccles & Bungay Journal: All Hallows will close on January 31All Hallows will close on January 31 (Image: Bruno Brown)

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Norse Care is owned by Norfolk County Council.

It is the largest care provider in the county, delivering services to about 1,500 people in residential care homes and housing with care schemes.

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