THE OWNER of a care home which shut at six hours notice has defended its closure - after being publicly questioned by the Lancashire Telegraph.

The move came as it emerged that Astley House Care Home, Whitehall Road, Darwen, was put on the market in March with planning permission for it to be converted into apart-ments.

Professor Mohammed Iqbal Memon issued a statement after the Telegraph asked him eight questions on the situation at the home.

At 2pm last Tuesday, the families of 15 women, many of whom were suffering from dementia and Alzheimer's Disease, were told that Astley House would close at 8pm.

One resident, 84-year-old Alice Elsworth, has since died.

In response to our questions, a Manchester legal firm issued a statement on Prof Memon's behalf in which he said the care provider at the home, Brightcrest Ltd, had been forced to close at six hours' notice because it would have been illegal to continue to trade.

Brightcrest has ceased trading and is due to go into liquidation on June 22.

Prof Memon is majority shareholder in Brightcrest Ltd and also listed as the sole director of the company which owns the building, Jason Management Ltd.

The statement said: "Unfortunately, on May 29, Brightcrest's accountants advised the shareholders that the company was insolvent and could no longer lawfully continue trading.

"This came as a shock to the shareholders but left them with no option other than to place the company into liquidation and, with great sorrow, to close the care home.

"The reason for the financial problems of Astley House was a significant drop in occupancy levels over a lengthy period of time and a number of very significant bad debts.

"It was not, unfortunately, possible to trade through this problem due to a lack of funds required to carry out necessary upgrading and refurbishment.

"Unfortunately it was not possible to give residents more notice as it would have been against the law for the company to continue trading once it was insolvent.

"Obviously the death of Alice Elsworth is regretted and the condolences of the shareholders of the company are extended to her family.

"However, they do not know the circumstances of her death and it is not possible or appropriate for any further comment to be made."

Martin Linton, of London-based insolvency practitioner Leigh and Co, which is handling the case of Brightcrest, had recorded a profit of £67,846 in the year ending May 2005, and £51,991 the year after.

However it had only paid £15,000 in rent since 2002 when it should have been paying £45,000 a year rising to £60,000 in 2005, he said. This left £195,000 of arrears, said Mr Linton, which have since been paid by Brightcrest to Jason Management Ltd.

But he said the company still owes just under £200,000 to creditors of which £177,000 is due to the landlord of the building Jason Management Ltd for other costs relating to the building.

According to Companies House, Prof Memon is the sole director of Jason Management Ltd, which is registered as being based in Stantley Street, Liverpool.