Bosses at Grimsargh House in Preston Road, Grimsargh, declined to speak to the Post, but it is believed the home closed on Thursday evening after 48 hours notice.
It is thought around 15 residents have been affected, and all staff have lost their jobs.
The Care Quality Commission (CQC) made the urgent application for closure following several inadequate inspections in the past year.
The home was placed into special measures last April and was deemed inadequate overall since.
A CQC spokesman said: “This action was taken following an order made by Manchester Magistrates Court, after an urgent application by the CQC to cancel their registration. These orders are made when the Court agrees that there is a serious risk to a person’s life, health or well-being.”
The CQC is working with Lancashire County Council (LCC) to ensure the safety of residents .
Tony Pounder, LCC’s director of adult services said: “Our primary concern is the safety and wellbeing of residents and our social care staff are working closely with them and their families to discuss options, provide advice and support to secure alternative care homes that will meet their needs.”
All residents were expected to have moved by the weekend, with LCC staff vowing to monitor and review residents’ health and wellbeing.
Last year Chris McKenzie, director of Button Space Ltd, which owns the home, said he was taking the CQC to court in dispute over the April inspection report which stated the service was not safe, not effective, not responsive, not well-led and some aspects were not caring.