CARE homes company Four Seasons has collapsed into administration, raising fears for thousands of vulnerable elderly residents.

Holbeche House Care Home in Kingswinford and Ashbourne Care Home in Dudley are two of the 322 homes the company runs around the country.

The debt-laden company has appointed corporate undertakers at Alvarez & Marsal (A&M) to carry out the process following an aborted sale attempt.

Four Seasons houses 17,000 elderly residents across 322 homes, although the firm insists that operations will be unaffected by the move.

The collapse is the biggest care homes failure since Southern Cross went bust in 2011.

Late last year, US hedge fund H2 Capital Partners, which effectively controls Four Seasons, ordered a sale of the crisis-hit company, which is struggling under a £525 million debt mountain. The bulk of the debt is held by H2, which is run by Spencer Haber.

Only weeks ago, Four Seasons insisted that it had "sufficient operating liquidity" to be able to complete the sale process.

A&M will now attempt to sell the group out of administration.

Dr Claire Royston, group medical director of Four Seasons, said: "Today's news does not change the way we operate or how our homes are run or prompt any change for residents, families, employees and indeed suppliers.

"Our priority remains to deliver consistently good care. It marks the latest stage in the group's restructuring process and allows us to move ahead with an orderly, independent sales process."

Richard Fleming, of A&M, said: "We are committed to ensuring the group delivers continuity of care as we work to undertake the independent sales process.

"The group has continued to improve its quality ratings across their portfolio of homes and hospitals.

"The group's operations are fundamentally strong and a successful sales process will enhance those operations' ability to thrive."