A care home with space for 16 residents will close in three weeks.
Casterton House Care Home, based in Casterton Road, Stamford, has provided care for elderly people for 18 years.
But a drop in the number of residents has forced owner Chris Dunmore to review its future and he announced last week that it will close on February 22.
He is now working with Lincolnshire County Council to find alternative homes for the 10 residents who currently live there.
Mr Dunmore said: “The number of residents has decreased over the last six years which I believe is down to the government wanting to keep people in their own homes for longer.
“It’s disappointing to have to close the home, which would have been open for 19 years in March. We are very sorry for all the residents and staff affected but you can’t run something at a loss.”
Mr Dunmore owns two other care homes in Spalding and Grantham. Residents at Casterton House have been offered places at these homes but it is not yet clear whether any will take up the offer.
Mr Dunmore is working with Lincolnshire County Council to make sure alternative arrangements are put in place for everyone before the home closes.
Head of adult care, Nigel Sheriden, said: “We are working to support the residents affected by this closure. Our priority is to assess their individual needs and find appropriate care.”
The home has 15 members of staff.
Mr Dunmore said: “They have been offered internal vacancies and we are working with other care homes to find them new jobs. We hope everyone will be able to find a new position.”
The closure of the care home was announced on Thursday last week.
On Friday planning permission was granted for the premises to be demolished and two houses built. The plans were submitted in November.