Friendship Village retirement community in Schaumburg files for bankruptcy protection

Citing industrywide hardships from the COVID-19 pandemic, Friendship Village of Schaumburg - the largest continuing care retirement community in the state - has filed for Chapter 11 bankruptcy protection.

In doing so, President and CEO Mike Flynn said Friendship Village expects to be operating normally throughout the process to restore its financial sustainability.

Part of that process is receiving court approval to engage in the marketing and sale of the community, he said.

"This process is very different from what you might think of when you hear the word 'bankruptcy,'" Flynn said in a statement. "Like other senior living communities in the industry that have gone through this process, filing for Chapter 11 allows us to continue to operate without interruption as we work to rebuild the financial strength of FVS.

"Additionally, by taking these steps toward a healthier financial structure, FVS will gain the financial flexibility to make material improvements that will further enrich our campus, amenities, and services," he added.

According to the 38-page bankruptcy filing, the company has between about $100 million and $500 million in liabilities, about $10 million to $50 million in assets and between 200 and 999 creditors. The largest creditor is listed as UMB Bank, which holds an unsecured claim of about $75.4 million, the filing indicates.

Over its 46 years, Friendship Village has become an integral part of the overall community, Schaumburg Economic Development Director Matt Frank said. Not only is it among the municipality's top employers, but it also provides a variety of housing options for residents as they age, he added.

The impact of the pandemic was most strongly felt in the inability to provide tours of Friendship Village for nearly a year, causing occupancy to fall significantly from what had been a typical rate of 8 to 10 sales per month, company officials said.

Last year, Friendship Village began discussions among its stakeholders to find consensus on how to move forward. The bankruptcy process coupled with pursuit of finding a buyer became the favored choice.

"We expect no changes in day-to-day life in our community due to this process. People who wish to join our vibrant lifestyle and true tradition of life care can still do so during this time of restructuring," Flynn said.

When fully occupied, Friendship Village can accommodate up to 1,000 residents on its 60-acre campus, the 16th largest of its kind in the entire nation.