Enlivant to Lay Off 284 Workers at Chicago Support Center

Senior living operator Enlivant is laying off 284 employees at its corporate support center in Chicago.

The company made notice of the layoffs in a recent Illinois Worker Adjustment and Retraining Notification (WARN) Act notification. A representative for Enlivant on Thursday declined to comment on the record when reached by Senior Housing News.

The WARN notice shows Enlivant will begin layoffs at its support center on July 16. The operator is laying off 194 total staff in July, 65 in September, eight in October and 17 in December. The WARN notice did not include any Enlivant communities.

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In the notice, Enlivant listed “closing” as the type of event that prompted the layoffs, but did not detail the specific cause. The notice was first received by Illinois workforce officials on May 16, as required by state law.

Enlivant has run into challenges related to rising interest rates and expenses stemming from the Covid-19 pandemic.

A going concern notice was first issued in March regarding the JV of Enlivant-operated communities owned by Sabra and TPG, with a financial audit noting there was “substantial doubt” about the ability of the JV to function due to high expenses and rising interest rates. Sabra officially exited the JV in May and is moving on from the Enlivant JV with no financial implications, according to Sabra CEO Rick Matros. The JV involved more than 150 communities.

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To continue operations, it was noted that Enlivant would need “additional liquidity to continue its operations over the next 12 months.” Earlier this year, Enlivant was in talks with its lenders, Fannie Mae, Freddie Mac and KeyBank to restructure its financing following a notice of default.
Many of the JV communities have been taken back by the lenders and are transitioning to new operators, including Navion and Discovery Senior Living, as reported by SHN.

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