In what can only be said is a surprising move, Pacifica Senior Living filed for bankruptcy, but not the usual Chapter 11 bankruptcy protection that would allow them to restructure their assets and debts and continue to operate. No, this is a Chapter 7 bankruptcy filing, meaning the company will dissolve, liquidate what remains, and will be gonzo. And this after more than 45 years in business.
The California-based privately-owned company had grown to just under 100 communities, making it one of the larger seniors housing companies in the country. In its largest transaction, it purchased 15 properties from Retirement Housing Foundation for $180.5 million in 2024. We have heard they suffered from some legal problems, but who didn’t in the past five years? However, if they treated their vendors and residents like they treated us over the years, maybe it is not a bad thing that they are liquidating. Let’s just say, never the common courtesy of a returned call over many, many years. We do know people who got along with them, but they were also pushed around a bit. We don’t think any tears will be shed, other than by families of residents if they start shutting down communities and kicking out residents.
With a liquidation, there will be a feeding frenzy of opportunistic buyers pouncing on them, but we have not heard who will be handling the liquidation of the assets. Since we have not seen many (if any) Chapter 7 liquidations in seniors housing, we are not sure how they could continue operating until a sale occurs. Let’s just hope this does not result in a big black eye for the industry.
