Major national healthcare chain files for Chapter 7 liquidation | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

Senior living facility operators have faced enormous obstacles since the beginning of the Covid-19 pandemic that led many into financial distress and forced several of them to file for bankruptcy and sometimes permanently shut down.

Senior care home companies were overwhelmed in 2020 during the pandemic, as 40% of residents in facilities had or likely had Covid-19 that year. Over 1,300 facilities had infection rates of 75% or higher in surge periods, the U.S. Department of Health and Human Services Office of the Inspector General reported.

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A major problem for senior facilities was staffing challenges, as high infection rates led to a significant loss of staff and difficulties in hiring, training, and retraining new staff.

Economic issues mounted as rising inflation after the start of the pandemic impacted senior facilities’ expenses and increased the cost of products, supplies, and employee wages. Higher interest rates in the last three years have also increased the cost of facility operators’ debt.

Senior care companies also dealt with inadequate Medicare, Medicaid, and insurance reimbursements that led to capital shortfalls.

From 2021 through 2024, 51 senior care companies filed for bankruptcy with 13 in 2021, 12 in 2022, 15 in 2023, and 11 in 2024, according to data from Gibbins Advisors.

Among the operators to file for Chapter 11 bankruptcy in 2023 were Evangelical Retirement Homes of Greater Chicago, which filed Chapter 11 in June 2023 to sell its assets at auction, and Windsor Terrace Health, an operator of 32 nursing homes in California and three in Arizona, in August 2023.

Senior care facility companies file for bankruptcy

Several senior care facility operators faced financial distress and filed for bankruptcy protection in 2024 as well. Magnolia Senior Living, an operator of four facilities in Georgia, filed for Chapter 11 protection on March 19, 2024.

One day later, huge senior living firm Petersen Health Care, which operated about 100 nursing homes, assisted-living and long-term care facilities in Illinois, Iowa and Missouri, filed for Chapter 11 bankruptcy protection on March 20, 2024.

Pacific Senior Care files Chapter 7 liquidation.

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Pacific Senior Living to liquidate

And now, giant senior care facility chain Pacific Senior Living LLC, which operates about 93 care homes nationwide, on March 24, 2025, filed for Chapter 7 liquidation, with some of its facilities reportedly set to evict residents and close.

Residents of Pacifica Senior Living’s Santa Clarita Hills Senior Living in Newhall, Calif., were informed in late February that they would need to move out of the 88-unit facility, which was set to close on May 1, according to The Signal.

More bankruptcies:

Pacific Senior Living has also faced legal judgments as it settled a lawsuit in 2024 for $2.5 million involving its Healdsburg Senior Living facility in Healdsburg, Calif., the Santa Rosa Press Democrat reported.

The San Diego-based debtor listed up to $100,000 in assets and $10 million to $50 million in debts in its petition filed in the U.S. Bankruptcy Court for the Southern District of California in San Diego.

Pacific Senior Living, which was founded in 1978, operates independent-living, assisted-living, memory-care, respite-care, skilled-nursing, and adult-care facilities. Rates at the company’s facilities range from $1,795 to $7,500 per month for assisted-living care, $2,500 to $7,200 for memory care, and $1,995 to $6,695 for independent-living care, according to data from Seniorly.com.