Senior Care Centers COO Mike Beal: “Action is absolutely necessary.”

A troubled Dallas-based operator with more than 100 skilled nursing and assisted living facilities has filed for bankruptcy, hoping to get out from under the weight of lease costs.

Senior Care Centers announced the move Tuesday afternoon, noting that it would allow the company to continue operating without interruption. Officials said they hope to continue regular business at the 100 skilled care and senior living centers while transitioning some to new operators, according to a press announcement.

“After careful analysis, we determined that the protections afforded by the Chapter 11 process are the best way to address the company’s debt and costly leases while allowing us to continue to provide all the top-level care and support our residents deserve,” said Kevin O’Halloran, the chief restructuring officer. 

Signs of trouble appeared ominously in November, when Sabra Health Care announced that it was cutting ties with its largest operator and selling 36 skilled nursing facilities, after Senior Care Centers had defaulted on its rent. Senior Care has locations in Texas and Louisiana and serves almost 10,000 individuals.

SCC said it plans to continue paying vendors and employees during the bankruptcy process, with no service interruptions expected. Company officials said they have been hampered by cuts in reimbursement, coupled with “ballooning rent payments.”

“As the entire industry has seen, the leases associated with the communities have become cost-prohibitive,” Chief Operating Officer Michael Beal said. “This kind of action is absolutely necessary to address those costly leases while continuing to care for our patients and residents.”