The Center for Autism and Related Disorders, which operates 130 treatment centers in the U.S., filed for bankruptcy in Texas on Monday with a plan to sell itself back to its founder.
The center suffered an $82 million net loss in the 12 months ending April 2023, largely as a result of long-term impacts of the COVID-19 pandemic in the U.S., according to court filings in the Houston bankruptcy court.
The company is majority-owned by PE firm Blackstone, and it intends to sell itself in bankruptcy. It has a $25 million offer in hand from Dr. Doreen Granpeesheh, who founded the center in 1990.
Granpeesheh stepped down as CEO when the company was sold to Blackstone in 2018, but she retained a 21% equity stake. A sale to Granpeesheh would provide a “seamless transition” for the company’s 3,500 patients and allow the company to retain the majority of 2,500 employees, according to court filings. Reqd more.
