Scooter Store to close for good

Monday, September 16, 2013

NEW BRAUNFELS, Texas – A decision by CMS has led the country’s largest mobility provider to call it quits, The Scooter Store said in a Sept. 13 statement.

The agency sent two letters to The Scooter Store on Sept. 12: one terminating its contracts for Round 1 of competitive bidding; the second excluding the provider from Round 2 of the program.

“Since the CMS action effectively eliminated the company’s ability to consummate a Section 363 sale out of its Chapter 11 bankruptcy case, The Scooter Store board of directors has determined to proceed with Chapter 11 liquidation,” the company said.

The Scooter Store will wind down operations in the coming weeks, furloughing employees, including management, as of Sept. 13. The provider will also auction off its physical assets.

Going into bankruptcy, The Scooter store planned to downsize, rebrand and come out a new company with a new owner.

“The Scooter Store team worked long and diligently to develop a new path forward for the company,” the company said. “During these last months, our employees worked tirelessly to service existing patients and customers responsibly. Every effort has been made.”

At its height, the Scooter Store employed more than 2,400 people and was the largest private employer in New Braunfels, according to the San Antonio Express News. As of Friday, it had about 200 employees at its headquarters and about 170 spread over 55 distribution centers around the country.

The Scooter Store’s difficulties began in earnest with an FBI raid in February that led to a mass-layoff of approximately 1,600 employees in March. 

The provider declared bankruptcy in April 2013. 

A bankruptcy auction is scheduled for Sept. 23, with a sale hearing on Sept. 24.