80-year-old retirement community chain files Chapter 11 bankruptcy
Senior care facility operators have faced economic challenges in 2025 that include increased insurance liability premiums, a decline in reimbursement rates, and rising labor, product, and operating costs. These economic issues were projected to lead to an increase in senior care facility bankruptcy ...
Senior care facility operators have faced economic challenges in 2025 that include increased insurance liability premiums, a decline in reimbursement rates, and rising labor, product, and operating costs.
These economic issues were projected to lead to an increase in senior care facility bankruptcy filings this year, rising from 11 in 2024 to 15, according to Gibbins Advisors' "Healthcare Restructuring: Trends and Outlook" released on Nov. 5.
Nursing home facility operators file for bankruptcy
Troubled skilled-nursing facility chain operator Cypress Skilled Nursing LLC was among those companies seeking bankruptcy protection, as it declared Chapter 11 to reorganize its businesses, according to RK Consultants.
The Atlanta-based operator of nine skilled nursing facilities in Georgia filed its petition in the U.S. Bankruptcy Court for the Northern District of Texas on Oct. 13, listing $1 million to $10 million in assets and liabilities in its petition.
The debtor did not state a specific reason in its petition for filing for bankruptcy, but it faced scrutiny from regulators for operations at seven of its facilities.
More bankruptcy:
- 34-year-old casual dining chain files for Chapter 11 bankruptcy
- Major seafood company files for Chapter 11 bankruptcy
- 55-year-old women’s fashion company files Chapter 11 bankruptcy
National nursing home facilities owner Genesis Healthcare Inc., which operated 175 nursing home facilities in 40 states with 20,000 beds, 15,000 residents, and 27,000 employees, filed for Chapter 11 bankruptcy on July 9, 2025, seeking a sale with over $708 million in secured debt and over $1.5 billion in unsecured debt.
The debtor revealed on Dec. 1, 2025, that an affiliate of Pima Capital Partners submitted the winning bid in a bankruptcy auction to purchase Genesis for $40 million cash and assumption of liabilities, Skilled Nursing News reported.
The bid requires bankruptcy court approval. SAhutterst
SpiriTrust Lutheran files for Chapter 11 bankruptcy
And now, 80-year-old retirement community chain SpiriTrust Lutheran has filed for Chapter 11 bankruptcy protection, seeking a sale of its assets after facing lawsuits and court judgments.
The York, Pa.-based non-profit operator of life-plan communities and senior care services filed its petition in the U.S. Bankruptcy Court for the Middle District of Pennsylvania on Nov. 21, listing $50 million to $100 million in assets and $100 million to $500 million in liabilities, according to Bondoro.
The debtor's largest unsecured creditors include Elior Inc., owed over $2.8 million; Higmark Blue Shield, owed over $1.2 million; Warfel Construction Co., owed over $1 million; Newsmart Technologies Inc., over $671,000; Lutheran Social Ministries of NJ, owed over $616,000; General Healthcare, owed $470,000; Schaad Detective Agency, owed over $367,000; and Masonic Village Pharmacy, owed over $331,000.
SpiriTrust Lutheran top unsecured creditors
- Elior Inc., owed over $2.8 million
- Higmark Blue Shield, owed over $1.2 million
- Warfel Construction Co., owed over $1 million
- Newsmart Technologies Inc., over $671,000;
- Lutheran Social Ministries of NJ, owed over $616,000
- General Healthcare, owed $470,000
- Schaad Detective Agency, owed over $367,000
- Masonic Village Pharmacy, owed over $331,000
The debtor listed $19 million in unsecured debt, judgments totaling $8.95 million, and $83.3 million in secured debt owed to M&T Bank.
The Chapter 11 bankruptcy filing triggered an automatic stay of all litigation while the bankruptcy case proceeds.
SpiriTrust Lutheran's debts
- Secured debt, $83.3 million
- Unsecured debt, $19 million
- Court judgment awards, $8.95 million
The debtor will seek up to $12.2 million in debtor-in-possession financing that includes $6.7 million in new money to fund operations and another $5.5 million to roll up prepetition debt, according to documents on PacerMonitor.
SpiriTrust, which operates six complete care retirement communities in York, Adams, and Franklin counties in Pennsylvania, employs about 600 workers.
SpiriTrust Lutheran sells, closes affiliates
The retirement communities' owner sold its Living Independence for the Elderly centers in Cumberland and Franklin counties in Pennsylvania in 2023, PennLive reported.
SpiriTrust Lutheran later shut down its affiliate SpiriTrust Lutheran Home Care & Hospice in August 2025.
Related: 64-year-old furniture store franchisee files Chapter 11 bankruptcy
What's Your Reaction?
