Lenders give Scooter Store breathing room

Tuesday, March 26, 2013

NEW BRAUNFELS, Texas – The Scooter Store will remain open past its initial deadline of March 31, the company announced today.

“I am encouraged that the company’s lenders are working with us and providing sufficient liquidity to help us navigate a path forward beyond the initial extension of March 31,” stated Larry Young, chief restructuring officer. 

There was concern over The Scooter Store’s future after CEO Martin Landon sent a letter last week to the Texas Workforce Commission saying the company had financing only through the end of the month. 

“The company has obtained sufficient financing to allow it to avoid the immediate closure of the New Braunfels facility until March 31, 2013, and is optimistic that further efforts will allow the New Braunfels facility to remain operational beyond that date,” Landon wrote.

The Scooter Store is working with a staff of 300 employees while it tries to create a “viable business model,” Young said. 

“Our distribution centers are open and serving customers,” he stated. “Serving customer needs remains our top priority.”

The Scooter Store furloughed all but 300 employees on March 8. It plans to officially lay off approximately 1,500 employees as of March 31.




While the Scooter Store struggles financially to even keep their doors open they continue to deliver whatever high end rehab chairs they have in at the distribution centers. They are doing this knowing that they will not be able to service them nor will the customers be able to obtain service from other providers at a later date. The Scooter Store currently is on credit hold with all the vendors and is only servicing chairs when they can get parts transferred from other distribution centers. The Scooter Store has laid off their entire staff of Alliance Seating and Mobility ATPs so none are involved in the delivery or follow up process. The few ATPs on staff  were not involved in the equipment evaluation and selection process as mandated by Medicare.The Scooter Store remains open with a minimal staff at each distribution center in order to continue to collect money on the tens of thousands Medicare rental chairs they have out across the USA.