More than 50 frail pensioners are facing upheaval following news that two nursing homes are to close.
David Carr, who owns Whitfield Cottage and Rookstone Nursing Homes, both at North End, Durham, has written to residents' families informing them that they will cease operating on August 25.
He blames the closures on insufficient fees from Durham County Council, staff shortages and the prohibitive costs of amalgamating the homes and bringing them up to the required standard.
The news has been greeted with dismay by staff, residents and their families.
Pam Oates, whose 91-year-old mother Doris Woodruff has lived at Rookstone for three-and-a-half years, said: "She's so frail that I really don't know how it's going to go.
"I don't know how long it's going to be before I'm offered another place for her.
"I haven't told her yet as I don't want to get her upset.
"This is the last thing she needs."
Ms Oates said she was puzzled as to why Mr Carr, whose family has run Whitfield Cottage for the past 14 years, recently took over Rookstone.
"Why did he take on Rookstone when he perhaps knew that it wasn't viable?", she said.
Mary Gibson, Rookstone's matron, said: "The news came totally out of the blue - it's absolutely unbelievable.
"We had 51 residents from both homes to find homes for, and some have been successful, but there are huge waiting lists for the homes in the surrounding areas.
"It's a family unit, and when we said goodbye to residents at the weekend, I cried and the staff cried because they didn't want to go."
Mr Carr said that if he hadn't bought Rookstone, which was recently in receivership, it probably would have closed anyway. He said: "This certainly wasn't an easy decision to come to."
A Durham County Council spokesman said the fees the authority paid to nursing homes were among the highest in the region.
He said: "Residents and relatives who are now having to find alternative accommodation may find it difficult to understand how other homes manage to operate profitably."
Residents or relatives requiring help in relocating should ring social services on 0191-383 6049.
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