Worried families have held a crisis meeting at a dementia care home after its operator reported financial difficulties.

Relatives and managers met at Hope House, Clayton-le-Moors to discuss fears over the plight of Southern Cross Healthcare.

Shares in the plc plunged last month after the firm appointed KPMG to help it negotiate with landlords and lenders.

Anne Kendal’s 87-year-old father Jack Bury is a resident at the Rishton Road care home and needs 24-hour care.

She is worried about the home’s future and its facilities.

Anne, of Bayley Street, claimed: "The managers set out what the major worries were.

"They are saying that people who are incontinent are only allowed four pads per day. I’m worried about the situation because my dad's fees are £1,900 a month and any shortfall is going to come on to the residents."

Southern provides care to more than 1,000 people in Lancashire across 27 homes, with the bulk of funding coming from the NHS and councils.

Like all independent care providers they are facing challenges because fewer people are being placed in their homes as many local authorities try to cut costs.

On March 14 Southern Cross released a statement saying that its rent obligations had become ‘unsustainable’ and they planned to seek concessions from landlords.

Managers at the home are not allowed to speak directly to the press, but it has been reported that services that could be cut include escorts to take residents outside and chiropody.

Southern Cross regional director Phil Whitaker said: "In light of the recent media attention regarding the business outlook of Southern Cross, we would like to reassure residents and their families that the standard of care at Hope House and all of our Homes in the area remains the same and the services delivered by the staff will not be affected.

"Our number one priority is always the health and well-being of our residents."

"In response to recent media speculation, I would like to reassure people that residents in our care homes do not face the prospect of being made homeless.

"There are no closures planned as a result of the announcement on March 14, but we continually review the performance of our homes

" While we cannot guarantee success in the work being done to address challenges facing our business, we are working hard to ensure our network of homes matches the needs of our business."