Castlebeck, the care provider at the centre of the Winterbourne View scandal, has gone into administration.
The firm is responsible for 214 patients at care homes and treatment centres in the Midlands, North East and Scotland, it said in a statement.
Castlebeck closed its Winterborne View home, near Bristol, in 2011 after a BBC Panorama programme broadcast shocking footage of the ill-treatment of residents.
In a statement the company’s administrators, Grant Thornton, said Castlebeck had “focused on quality care provision and restoring confidence in the Castlebeck operations”. However, it said, falling occupancy rates and the closure of two more of its homes had “significantly diluted Castlebeck’s subsequent trading capabilities.”
It said the firm would operate normally while the sales of its centres went ahead, adding that some “prospective purchasers” had emerged.
A joint statement from the Department of Health, the NHS Commissioning Board and the Association of Directors of Adult Social Services said: “Administrators will begin a planned process, seeking buyers for the 16 Castlebeck facilities and whether or not buyers are found for all the facilities, the ongoing care of patients and residents will be the priority.”
It said councils and NHS clinical commissioning groups in areas affected should “work closely” with the firm and its administrators to protect service users.