The owner of a Fort Worth, Texas, retirement home has filed for Chapter 11 bankruptcy with a prepackaged plan to refinance $112 million in municipal bond obligations. Tarrant County Senior Living Center Inc., operating as The Stayton At Museum Way, aims to regain financial stability after struggling in the wake of the COVID-19 pandemic.
Fort Worth Files for Bankruptcy : Financial Struggles After the Pandemic
According to Stayton Chief Financial Officer Jeff Gentry, the retirement community has faced ongoing financial challenges since COVID-19 increased operating costs while simultaneously cutting into profits. In a first-day declaration on Tuesday, Gentry revealed that the enterprise has around $208 million in liabilities, with $112 million tied to long-term municipal bond obligations from the Tarrant County Cultural Education Facilities Finance Corp.
The Stayton’s financial difficulties were also exacerbated by delays in construction and initial move-in sales, which disrupted the nursing home’s operations early on. “These delays created a ripple effect that has continuously threatened Stayton’s operational stability,” Gentry said.
Previous Restructuring and Mounting Pressures
This is not the first time the Fort Worth-based facility has sought bankruptcy protection. Stayton previously restructured its debts in a Chapter 11 case in 2019, a move Gentry said provided the company with extra liquidity at the time.
