Seniors Housing Weekly Update-- Woes Only Increase For Assisted Living Concepts
May 8, 2012
Woes Only Increase For Assisted Living Concepts
Late last week, just before its first quarter earnings announcement, Assisted Living Concepts (ALC) announced a postponement of the earnings report, with no new date provided. Although no reason was given, on April 26, Ventas, the landlord for eight of their communities, filed a lawsuit against the company to terminate its leases because Assisted Living Concepts had received notices from both Georgia and Alabama that the states were going to revoke the licenses at three of the company’s communities. Ventas claims that these notices constitute a violation of the leases. ALC has now retained counsel to investigate any “irregularities” in those leases. Give me a break. Too bad management has not disclosed that one of its Idaho facilities was closed by the state last month. We assume that all 18 residents have been moved out by now. Apparently, workers at that facility refused to allow inspectors into the building one day, but relented when they returned two days later. This is a company with serious management problems, and while we have to assume a sale of the company is off the table, it couldn’t come soon enough.