Rest home residents and staff have been given two weeks notice of its closure.
King Abbot Rest Home in Abbotsway, Penwortham, which was opened in 1988 by Andrew and Julie Mather, will close permanently on Saturday.
Nine residents have had to find alternative accommodation, and staff said they were “heartbroken” by the situation.
Mr Mather said: “Sadly Mrs Mather, matron and care manager, suffered a stroke from which she is unlikely to recover, and the deputy matron also had to retire due to illness.
“After much heart-searching and with great sadness it was decided that for these personal reasons there was no alternative but to close the home.”
Mr Mather praised the staff for their commitment during the past 12 months, and said “every assistance” is being offered to those staff who are looking for new jobs.
The home, which has space for up to 13 residents, came under question from the Care Quality Commission (CQC) during its last inspection in June for missing key standards on safe and appropriate care, and standards of quality and sustainable management.
A CQC spokesman said the organisation had been informed by owners that the closure was for financial reasons.
They said: “Whilst we identified some concerns with regards to care and welfare and quality assurance the home was meeting all other standards checked.
“We set compliance actions and intended to return to follow up on progress with improvements.
“However, subsequently the provider has applied to cancel their registration as the service is no longer financially viable.
“The local authority are currently working with the home to find appropriate alternative accommodation for all residents.”