A care home near Darlington could face further action unless immediate steps are taken to improve hygiene.
The Care Quality Commission (CQC) discovered "appalling cleanliness and hygiene" during an unannounced inspection of Middleton Lodge in June.
Inspectors found that the needs of one resident who needed incontinence supplies were not being met, and that the lounge furniture was soiled and stained.
Jo Dent, regional director for the CQC, said that further inspections were planned to see whether owner Potensial Ltd had made the necessary improvements.
She told the Darlington and Stockton Times: "What we found at Middleton Lodge was unacceptable.
"This warning sends a clear and public message that Potensial Ltd needs to address these issues as a matter of urgency or face serious consequences."
A spokesman for the care home said that it tried to meet the highest standards at all times.
He added: "Since the CQC visit, immediate and decisive action was implemented at Middleton Lodge to make improvements and to address the concerns raised."
Continence is an important concern in nursing homes, as research suggests that around 70 per cent of residents are not fully continent and may require incontinence supplies or urinary catheters.
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