(Bloomberg) -- LaVie Care Centers LLC, which operates 43 nursing homes and assisted living facilities under names including Consulate Health Care, became the latest chain to file for Chapter 11 bankruptcy as the industry grapples with high labor costs, lower occupancy and uneven reimbursement rates. 

Since the pandemic, the company — once one of the largest operators of skilled nursing facilities in the US — has divested more than 90 facilities. It now operates in five states and has 3,600 employees, according to court papers. 

Like many peers, LaVie struggled with higher costs and was forced to rely on expensive staffing agencies to fill positions. While it sold off many underperforming locations, it was left with lease liabilities and litigation claims tied to those facilities, Chief Restructuring Officer M. Benjamin Jones wrote in court papers. It wasn’t able to negotiate repayment plans with all of its creditors, and fell behind on settlement agreements with others.  

Chapter 11 filings allow a company to keep operating while it works out a plan to repay creditors. To help fund itself in bankruptcy, LaVie has lined up $20 million of financing from lenders including Omega Healthcare Investors Inc., its largest landlord. It’s seeking to reorganize or sell itself. 

The company sought bankruptcy protection in Atlanta and listed assets of up to $1 billion and liabilities of as much as $10 billion in its petition. 

Nursing homes have struggled in the aftermath of the pandemic, and a number have sought bankruptcy protection. Petersen Health Care Inc., which runs nearly 100 facilities in the US Midwest, filed for bankruptcy in March. A group of homes in Western Pennsylvania sought court protection in May, and Senior Choice Inc. entered Chapter 11 in February after defaulting on its debt. 

The case is LaVie Care Centers LLC, 24-55507, U.S. Bankruptcy Court for the Northern District of Georgia. 

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