The bankruptcy was a closely guarded secret. Only one ad in there The echoes of November 24th informed attentive readers about this “Searching for Candidates to Regain Control of a Principal Holding Company, Either Securities or Assets,” without mentioning the name Medicarme. It will become official on Thursday, February 29th. Day on which the Nanterre Commercial Court should dissolve the private group of establishments for the elderly and disabled. The 43 facilities, including 34 nursing homes, must find a buyer or risk closing their doors. The bankruptcy of Medicarme is a first in France. It highlights the severity of the economic crisis hitting the sector.
As the ninth player in the lucrative private sector, Medicharme manages 2,011 beds in six regions and employs 1,230 people. At the end of the sales process, known as a “prepack cession,” court-appointed legal representative Marc Sénéchal has three weeks to present the offers to the judges.
The court is expected to publish the names of the successful buyers at the end of March. The buyers will not have to pay off the company’s €150 million debt, nor will they have to bear the costs of possible layoffs. The businesses are on sale for one euro. “Our goal is to save as many businesses as possible, entrust World Delphine Mainguy, President of Medicharme. If some do not have a buyer, we organize the transfer of residents in collaboration with the regional health authorities (ARS) to maintain their care. » Employees “will continue to be paid and supported in their efforts, continues MMe Manguy. A psychological unit will be set up.”
Establishments are sold per room
Founded in 2015, the group was launched at a time when the booming sector was attracting investors. Its economic model could not withstand the sudden decline in nursing home activity. The mechanism developed by founder Patrick Boulard was nevertheless well-oiled. Medicarme developed by purchasing nursing homes, which were resold room by room to institutional investors or individuals looking for tax-free investments. Every Medicharme nursing home pays rent to its landlords. The companies are now owned by around 1,100 owners.
The sale of the rooms makes it possible to pay off the debts incurred when purchasing nursing homes. And generate added value. However, the real estate martingale assumes that rent absorbs no more than half of the profit.
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