Auchlochan Garden Village in South Lanarkshire is said to have been making a loss since 2009.

The owners of a retirement village in South Lanarkshire have confirmed that administrators have been appointed amid financial difficulties. 

Auchlochan Garden Village - a few miles south of Lesmahagow - is run by charity MHA who appointed James Fennessey, Robert Young and Blair Milne of Azets Holdings Limited as Joint Administrators earlier this week. 

The decision will see the charity remove support for its three other facilities in Scotland, as well as the Auchlochan site which can accommodate around 300 residents. 

The BBC has reported that the charity could not overturn legal contracts which had been part of the business model before it took over, but that no redundancies are expected at this time from the 216-strong staff team. 

Sam Monaghan, MHA chief executive, said: "This is not a decision we have taken lightly and to support the continuation of services during the process of administration, Auchlochan will be able to draw on a contingency fund of £5million from MHA.

"This will provide the best opportunity for new operators to be found, which includes the potential for leaseholders to set up their own management company."

A review of services meant the charity took the decision to sell its other sites at Wesley Court in Granton, Edinburgh; Taransay Court in Milton, Glasgow; and St Andrew's Court in East Kilbride.

Prof Soumen Sengupta, director of health and social care for South Lanarkshire, added: "We will be emphasising to the administrators the importance of them engaging with residents and their families appropriately, to listen to their concerns and respond to their anxieties.

"We will also work closely with the Care Inspectorate to engage with the administrators throughout what we appreciate will be an unsettling period for all involved."