On July 3, the not-for-profit organization operating Glenmoor retirement community filed for Chapter 11 bankruptcy. Glenmoor is located in the World Golf Village, which is in St. Johns County and operated by Life Care St. Johns Inc. The retirement community includes 70 apartment homes, 32 patio homes, 31 estate homes, 11 small cottages, a health center with 30 nursing beds and an assisted living center containing 15 suites. There are approximately 247 residents.
Glenmoor opened in Oct. 2001. In 2006, the community was nearly full, with 99 percent occupancy. However, that number declined steadily. The community reached 88 percent occupancy in 2010 and remained at that level through 2012. The declining economy lead many potential residents to rethink or delay their moves. The bankruptcy petition revealed that entrance fees have been insufficient to pay refunds owed and other expenses. It is estimated that the company owes approximately $7.787 million in refunds to former residents. In addition, the company has $55.6 million worth of bonds outstanding.
A representative for the company stated that the bankruptcy should not affect residents of the community. The company anticipates providing the same level of service that residents are accustomed to receiving. A consultant will be hired to review Glenmoor’s business plan, including marketing and pricing. The company then intends to implement the consultant’s suggestions to increase revenue. Finally, the company will work on restructuring outstanding debts to exit bankruptcy. It is hoped that the process will be completed within nine months.
When a company’s debts exceed its income and assets, filing for Chapter 11 bankruptcy can sometimes help the company continue to operate. A bankruptcy attorney may be able to assist with negotiating debts, helping to restructure the company or filing for bankruptcy protection.
Source: Financial News & Daily Record, “Glenmoore operators file for Chapter 11 bankruptcy regorganization“, Mark Basch, July 15, 2013