Allcare Dental & Dentures, the dental chain that closed abruptly last December and filed for Chapter 7 bankruptcy last month, has sold off nearly all of its equipment in an attempt to pay its creditors.
In a bankruptcy meeting held December 12 in Buffalo, NY, Allcare executives explained to creditors how the company operated, but not why it failed, according to an Associated Press (AP) story.
Allcare CEO David Pennington said that Allcare Dental Management provided advertising and staffing for Allcare offices in 13 states, arranged leases, and purchased equipment. The branch offices paid management fees derived from patient fees, according to Pennington.
The company filed for bankruptcy on November 4 in U.S. Bankruptcy Court for the Western District of New York. The filing listed no assets and $3.6 million in liabilities, and court filings show HSBC Bank as the largest creditor, owed $1.7 million on a secured loan, according to the AP story.
