Fort Lauderdale, Fla.-based Delphi Behavioral Health Group has filed for bankruptcy, South Florida Business Journal said Feb. 9.
The organization owns 14 facilities, which it plans to sell or close. It filed for Chapter 11 protection alongside 33 related companies and listed assets of between $1 million and $10 million and liabilities of $10 million to $50 million.
Only the organization's Summit Behavioral Health Princeton Junction (N.J), Serenity at Summit in Union, N.J., and Serenity at Summit New England in Haverhill, Mass., will be sold; all other facilities will be closed in February.
Delphi currently has 423 employees, according to a declaration filed by interim CEO Edward Phillips obtained by the publication.
It recently shuttered facilities in West Palm Beach, Pembroke Pines and Miami, all in Florida, and laid off over 133 employees as a result.
Delphi was acquired in 2017 by Washington, D.C.-based Halifax Partners due to debt accrued by the behavioral health organization and soon after faced further financial issues, according to the Business Journal.
It later acquired Berkeley Heights, N.J.-based Summit Health behavioral centers in New Jersey and Massachusetts through a loan with Brightwood Loan Services, which assumed complete equity in the company in 2020 when Delphi defaulted on the loan.
Delphi then suffered an $18.5 million loss in 2022, and was unable to service its loans.