A FIRM facing an unlimited fine after providing “inadequate and unsafe” accommodation for 30 people is set to be liquidated.

Colchester Council is prosecuting Camelot Guardian Management Company Ltd, also known as Camelot Europe, after a concerned resident at the Old Rectory, in Lexden, contacted them in January last year.

The council became aware the property was being used as homes in multiple occupation without a licence.

The firm admitted 14 breaches of regulation and was due to be sentenced at Chelmsford Magistrates’ Court.

After a representative of the firm failed to attend, District Judge John Woollard said he needed further information about the company’s financial position before passing a sentence.

He said: “You will obtain the information from the liquidators. If they will not provide the information by January 10 then I will sentence on that date.”

The firm had rented a former care home to 30 people.

The company lets rooms in disused buildings to people who are known as “property guardians” to stop the structures falling into a state of disrepair.

Residents are asked to sign licensing agreements rather than tenancies which mean the company keeps a key to their private space and has the right to ask them to leave within 28 days.

In exchange, rents are cheaper.

During investigations the council’s private sector housing team found a faulty fire alarm system, blocked fire escapes and sealed doors.

While environmental health officers were inspecting the building, all those living in the property were handed an eviction notice.