Leeds home Donisthorpe Hall has cancelled the contract of the turnaround specialist brought in to improve standards following damning Care Quality Commission reports.

Bam Healthcare was recruited in April with a four-year plan to get Donisthorpe back on track. It had only completed the first phase - 100 days of crisis management - when it was relieved of its responsibilities.

A Bam spokesman said that on August 15, the contract "was abruptly suspended, and then terminated by Donisthorpe Hall's board of trustees, due to alleged breach of contract. Bam Healthcare strongly disputes the allegations made and the matter is now in solicitors' hands."

Andrew Brown, chair of the Donisthorpe trustees, would not discuss the reasons behind the decision. But he did refute rumours that the home would be closing, insisting: "We are here to stay."

Following a March inspection, the CQC reported that the home was "not safe, not effective and not well led". It was given an overall rating of inadequate, the watchdog's lowest.

The matter is now in solicitors' hands

A representative said on Wednesday that the CQC was unaware of the situation with Bam Healthcare.

"The CQC is continuing to monitor the home and expects to return to inspect the service again quite soon, with no date yet fixed.

"If they have improved, this would clearly be reflected in our next visit," he added.