A Nelson rest home is set to close with the loss of jobs and up to 31 residents affected.
The Oceania Group says its Omaio Village home in Stoke is half full and it makes sense to relocate residents to its three other Nelson rest homes.
Chief executive Geoff Hipkins says there is an over-supply of rest home facilities in Nelson.
Mr Hikpins says the planned closure is stressful for staff, and especially for elderly residents.
He says some of the seven fulltime and 31 part-time and casual staff will be relocated, but there will be redundancies.