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Erikson Retirement Communities recently announced that it would be selling itself to Redwood Capital Investments, LLC. Erikson picked Redwood over other bidders at an auction to prevent from having to file bankruptcy.
The sale still requires court approval, so details have not yet been released, but Redwood acquired almost all of Erikson's assets. Erikson currently owns and operates 19 retirement communities across the country in Illinois, Kansas, Colorado, Michigan, Massachusetts, Maryland, New Jersey, Texas, Virginia and Pennsylvania.
Erikson provides "worry-free" living to 22,000 retired Americans and employs more than 12,000 people. The company has been very careful in making sure that people know that their homes on Erikson properties and their hefty refundable deposits are not in jeopardy.
It is believed that the cause of the troubles with Erikson's finances began with the housing slump. Retirees often rely on the sale of their old home to finance the move into a retirement community. When homes stopped selling a couple of years ago, new membership dropped drastically. While it is a shame that Erikson had to sell, both they and Erikson are happy with the arrangement they agreed on. Redwood's long-term goals for the properties closely mirror Erikson's.
