The Texas company that ran all those commercials on TV for scooters or motorized wheelchairs for the elderly is one the selling block.
The Scooter Store announced Monday that it filed for Chapter 11 protection.
“The company provides a necessary product and service that is valued by a growing sector of the world’s population,” said Martin Landon, CEO.
“Unfortunately, historical overhangs coupled with an increasingly complex regulatory environment and mounting economic pressure in the healthcare sector have significantly impacted the company’s ability to operate under its current model,” said Landon. “The company is using the Chapter 11 vehicle to seek to create a new, financially healthy provider that operates in strict accordance with all legal, contractual and regulatory requirements,” continued Landon, “which would help the company complete the business turnaround that we were brought in to do.”
The company anticipates that it will operate with a streamlined footprint and a new focus on working with healthcare professionals.
Scooter Store expects to continue operating with its current workforce level throughout the restructuring process. Published reports indicate the workforce had alrady been slashed.
The company is seeking to retain Morgan, Lewis & Bockius LLP and Young Conway Stargatt & Taylor, LLP as restructuring counsel, the investment banking firm of Morgan Joseph TriArtisan to assist in the sales process, and Lawrence Young of AlixPartners, LLP as Chief Restructuring Officer.
The two main scooter manufacturers have been under fire for their sales practices and for leading to waste in the Medicare program as recipients buy the machines on the promise of increased mobility.