Hospice and home health provider Charter Healthcare, a portfolio company of Pharos Capital, recently filed for Chapter 7 bankruptcy. No public announcement was made.
The petition for bankruptcy was filed in the Federal District Court of Delaware in late January, according to documents obtained by Hospice News.
A public record search showed Chapter 7 filings for Charter locations in at least eight states, which span the company’s entire footprint. The company’s headquarters were in California. Charter’s website is also defunct.
As of February 2023, Charter provided hospice, home health, complex care management and palliative care services to nearly 13,000 patients. The company provided care under multiple brands.
Liquidation under Chapter 7 is available to individuals who cannot make regular monthly payments toward their debts as well as businesses choosing to terminate their enterprises, according to the Internal Revenue Service. In these cases, a court-appointed trustee is designated to convert the debtor’s assets into cash for distribution among creditors.
Court filings indicate that Charter’s total liabilities to creditors amounted to nearly $37 million.
The company’s private equity backer, Pharos, did not respond to inquiries from Hospice News. Charter’s attorney, named in court filings, also did not reply.
The filings also bear the name of Charter CEO Cheryl Lovell, who took the helm at the company early last year. According to her LinkedIn page, Lovell is no longer with Charter as of January.
As of 2021, the company was still actively acquiring hospice and home health companies. In April of that year, Charter purchased Texas-based The Providence Hospice and The Providence Home Health Services Inc. for an undisclosed amount.
Companies featured in this article:
