A not-for-profit senior living operator with nine senior living communities Texas is filing for liquidation through Chapter 7 bankruptcy.
The operator, Glen Hope Harbor — which exists under the umbrella of Texas nonprofit The Emmaus Calling — owns nine assisted living and memory care communities totaling 144 units under the name Autumn Grove Cottages in Houston and San Antonio, Texas. The operator in 2015 acquired the properties using a more than $38.1 million in municipal bonds.
But since 2019, the senior living organization has sustained operating losses that have made it insolvent, according to the March 7 bankruptcy filing. Glen Hope Harbor is listed as having $50,000 or less in assets, and between $10 million and $50 million in estimated liabilities.
Now, the nonprofit is looking to relocate its residents elsewhere prior to dissolving the operating company, according to the bankruptcy filing.
Glen Hope Harbor is among a small but growing list of operators feeling operational pain amid the mounting pressures of the Covid-19 pandemic, leading to bankruptcy or other financial agreements.
Edgemere, a high-end continuing care retirement community (CCRC) in Dallas, also ran into financial woes this year as occupancy dropped and cash on hand ran low. On March 9, Edgemere announced a forbearance agreement with Lifespace Communities and UMB Bank, granting the community’s leaders some leeway to strengthen its financial position.
Senior living nonprofit Covenant Living also purchased a CCRC in New Hampshire that filed for Chapter 11 bankruptcy last year.
Senior living organizations represented a significant portion of the health care bankruptcy filings in the latest Polsinelli-TrBK Distress Indices Report, which uses Chapter 11 filing data to measure overall economic distress. And those trends are expected to continue this year.
“We anticipate that the bankruptcy filing numbers will continue to increase, especially in the health care and real estate industries, as we enter 2022,” said Polsinelli Shareholder Jeremy Johnson, who is a bankruptcy and restructuring attorney and co-authored the latest report. “We haven’t seen the end of Covid-19 yet and the massive federal assistance that has kept facilities afloat will end soon.”