Kennett Square-based Genesis Healthcare filed for bankruptcy protection earlier this week, aiming to restructure the debt tied to facilities that it no longer operates, writes Harold Brubaker for The Philadelphia Inquirer.
The company has nursing homes in 17 states, including 42 in Pennsylvania and 11 in New Jersey. No immediate interruptions in resident care are expected.
Genesis was founded four decades ago in Chester County and grew rapidly through acquisitions. It peaked at over 500 nursing homes in 2016 and has cycled in and out of public ownership over the last 25 years.
The company suffered significant losses during the pandemic, as the nursing home sector experienced unprecedented strain and disruption. It avoided bankruptcy at the time thanks to a $50 million capital infusion in March 2021.
Since then, it has made meaningful progress, but the bankruptcy was deemed necessary to address its legacy liabilities.
“We have much to be proud of for the tremendous progress we have made as an organization over the last several years,” said David Harrington, Genesis’ executive chairman. “Our ongoing work has confirmed that, to maintain our momentum, we must address our legacy debt structure.”
Read more about Genesis Healthcare trying to turn around its real estate and finances in The Philadelphia Inquirer.
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