Absolut Care and seven of its subsidiaries have filed for Chapter 11 bankruptcy protection.
The company announced its bankruptcy filing Tuesday and also announced plans to close its Orchard Park facility, saying it has received regulatory approval for the closure. Absolut Care's other six facilities, including its 83-bed nursing home in Gasport, will remain open. The facilities' operating hours and services will not be immediately affected.
An Absolut Care spokesperson said the bankruptcy is necessary for the company to "financially reorganize itself and better position itself for the future." The Chapter 11 process allows companies to propose a plan to reorganize, while keeping its business open and paying off creditors over time.
Absolut Care CEO Israel Sherman said long-term health care facilities are facing "significant challenges," noting Eastern Niagara Hospital recently announced it will close its Newfane facility by October and lay off 50 employees.
"We are very confident that we will emerge a much stronger company after these legal proceedings are concluded," Sherman said. "It is our expectation that during this process that Patient Care, our employees, and our commitment to excellence will remain our top priority.”