Erickson Retirement Communities Files For Bankruptcy
Erickson Retirement Communities, a developer of senior-oriented living, filed for bankruptcy under Chapter 11. Redwood Capital Investments will take on Erickson's total assets and debt. Erickson provided home to 23,000 senior residents and employed 12,000 people.
Erickson has retirement communities in Pennsylvania, Texas, Virginia, Massachusetts, Maryland, Michigan, New Jersey, Kansas and Illinois.
Erickson said the Chapter 11 filing was necessary to restructure debt, split the core management and real estate businesses into separate entities, and pave the way for a sale.
With America's aging population expanding, one would predict that the market for services provided by the Erickson Retirement Communities would be untouched by recession. After all, 13% of the American population are people 65 years old and over. But, it seems the difficulty that some seniors are having with selling their homes in today's tough economic conditions does not allow them to easily transition into retirement houses. Hence, Erickson is actually losing market.