Retirement Community Goes Bankrupt

A decline in the housing economy thwarted the success of an upscale retirement community in Chicago.

The retirement home, located in popular yet wealthy section of the city, was expected to draw a more upscale community. While it is currently open and providing a home to many senior citizens, the revenue is not enough to continue operations without help.

The company is now asking for court approval to borrow $12.5 million from a private financing company. This amount will tide the company over until it has decided on a reorganization plan for Chapter 11 bankruptcy.

If the property is successful in obtaining debtor-in-possession financing, the community will be able to service its current residents. The business was the brainchild of a group of Franciscan sisters that run similar homes across the country. While it was started with much enthusiasm, thirteen months after it opened its doors to potential clients, just 80 condominiums had been sold.

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