Clare Oaks retirement community in Bartlett files for bankruptcy

Clare Oaks retirement community in Bartlett filed for Chapter 11 bankruptcy protection Monday but will continue to operate, according to the not-for-profit organization’s board president.

The retirement community has 325 residents and will continue accepting independent living residents and residents who require more care during the reorganization process.

Clare Oaks failed to reach an agreement with its lenders to restructure its $105.5 million in outstanding debt but has budgeted $19 million in revenue for the fiscal years ending June 30, 2012.

“Our operations, programs and services for our residents will not change,” said Michael Hovde Jr., president of the board of directors. “The job status of all employees remains the same, including their pay and benefits.”

The decision to file for bankruptcy protection was announced to residents and employees Monday but was not unexpected, Hovde said in a news release.

Although residences for assisted living and memory support care are at capacity at Clare Oaks, independent living residences “have been experiencing challenges similar to many retirement communities across the country,” according to Hovde.

The community, located at 825 Carillion Drive, opened in late 2007, was created by the Sisters of St. Joseph of the Third Order of St. Francis but is managed by Life Care Services LLC.