However, worsening market conditions after the 2019 restructuring kept pressuring the company’s bottom line. Gentry noted that COVID-19 significantly inflated operating costs, leading to increases in service fees to compensate. Additionally, increased competition in the Fort Worth area further squeezed Stayton’s profit margins.
“Between 2021 and 2022, Stayton’s expenses surged by 17%, while revenue only grew by 11%, due to factors like inflation, labor shortages, and the need to bring in new vendors,” Gentry said.
Fort Worth Files for Bankruptcy : Prepackaged Plan and Bondholder Support
Stayton defaulted on its bond obligations, which led to a forbearance agreement in January 2023. This default triggered a marketing process for Stayton and its assets, which culminated in an auction in March and a prepackaged restructuring plan designed to stabilize the company’s finances.
More than 90% of bondholders have voted in favor of the plan, giving Stayton a significant boost toward securing approval for the restructuring, Gentry said.
