A Nelson rest home has confirmed it is closing because a local over-supply of beds in the sector means it is not viable.
The Omaio home is one of three owned by the Oceania Group in Nelson.
Chief executive Geoff Hipkins says all 31 residents should be relocated by the end of this week. Many are going to other Oceania rest homes nearby.
Some of the 38 staff will lose their jobs, while others will be relocated.
Mr Hipkins says Omaio has been operating at 50% occupancy.