A charity that employs 140 staff, most of them disabled, has gone into administration.
Choices Independent Living, which cares for people with disabilities in London, is "hundreds of thousands of pounds" in debt, according to a spokesman for administrator Begbies Traynor.
He blamed the charity's problems on undercharging local authorities for contracts and said its survival hinged on whether it could secure fresh funding from local authorities.
About 25 staff were made redundant last week. The administrators are talking to Southwark Council about retaining the remaining employees until services can be transferred to another provider.
Choices was founded in 1995 to provide specialist care for people with disabilities. One of its main tasks is hiring and managing personal care assistants.