One of the biggest providers of adult care has been sold to another company – just two weeks after announcing it was winding up its business.

Last month Allied Healthcare said it was handing contracts back to around 150 local authorities after the Care Quality Commission warned it was likely to go bust because it did not have a bank lender lined up.

The company, which provided 13,500 elderly and vulnerable people with care in their own homes, said an extension of its lending facility would 'help support an orderly transfer of local authority care contracts to alternative providers.'

Now it has agreed to be bought by Health Care Resourcing Group, which runs recruitment agency CRG Healthcare, for an undisclosed amount.

However it is thought some local authorities have already transferred their adult social care services to other providers or brought them in-house.

In a statement Allied Healthcare said it understood that a number of local authorities and NHS commissioning groups were still considering transferring services to another provider or bringing them in-house.

It said: 'With long-term financial arrangements in place and a clear commitment to the continuation of high quality services, Allied Healthcare would urge local authorities to consider the potential disruption that could be caused by transferring services, particularly at this time of year.'