Landauer files for Chapter 11 ahead of sale

Monday, August 19, 2013

WILMINGTON, Del. – Landauer Metropolitan, Inc., a Mount Vernon, N.Y.-based provider of home health equipment and supplies, filed for Chapter 11 bankruptcy protection on Aug. 16, citing an anticipated $26 million decline in revenue resulting from losses related to competitive bidding, according to news reports.

The filing comes ahead of a $22 million sale to Quadrant Management, Inc., barring a better offer at a September auction. Quadrant is a New York-based private equity firm that manages more than $3 billion. Its core business is lower middle market investing and hands-on company restructuring, according to its web site.

TD Bank is the agent for lenders owed more than $29.4 million. Investors are owed about $6 million on a second-lien obligation, and vendors are owned about $15 million, according to a court filing.

Landauer, whose majority shareholder is Clairvest, a Toronto-based private equity firm, saw revenue fall from $137.1 million in fiscal 2012 to $128.5 million in fiscal 2013.

The provider did not receive any contracts as part of Round 2 of competitive bidding. A planned merger with AllCare Services, which accepted 63 contracts, has fallen through.

Landauer is also the subject of a government investigation into billing practices, according to news reports. 

The provider has 32 locations in eight states, and does most of its sales in New York and Pennsylvania.  



After 3 months, Landauer's Bankruptcy resulted in the closing of my work order to repair my electric wheelchare, and my unrepaired mobility device was returned to me effectively rendering my homebound.  This article is giving me some insight as to what happened, as I've recieved no contact from Landauer (only from Roadrunner, which is also soon to be closed).  It is becoming impossible to find a provider to repair  a mobility device that is both competent and has acceptable business practices. It would seem that it's either not possible to make money repairing mobility devices, and perhaps this needs to be investiaged.  Regardless this is the third company connected with mobility devices (the first was Pride Mobility) who business practices are questionable at best. 

I find this article both pathetic and sickening to say the least, as major names within Landauer's LI, NY division of upper management, along with key staff including their entire sales team has taken refuge under the umbrella of the AllCare brand. Let this be known for the record, that while the "merger" may indeed have fallen through, the takeover has only begun. Allcare has "fired without cause' many of his own loyal staff, in order to accomodate the same individuals who were with Landauer-Metropolitan. 

I can assure you that with all the lies and deceptive tactics that have been handed down to date, it will only get worse, before and if it ever gets better.