Carmel senior living center files for bankruptcy

One of Hamilton County’s best known luxury retirement living centers, The Barrington, has filed for Chapter 11 bankruptcy. The Carmel facility, owned by Mayflower Communities, Inc., is a 271-unit facility located on Guilford Road a short distance north of 116th Street.

In late January, Mayflower filed in federal bankruptcy court in Texas claiming about $152 million in liabilities and $96 million in assets at its Carmel facility. The company owns five other retirement homes around the country.

The Barrington opened five years ago with considerable fanfare. New residents paid what are called “refundable entrance fees” of $300,000 for an apartment plus a monthly maintenance fee and are guaranteed care for life.

Indications of serious financial problems became evident in November 2018 when the Barrington defaulted on municipal bond payments. Generally Chapter 11 bankruptcy is filed by corporations which ask the court to restructure their debts to make payment more possible or, in extreme cases, sell the assets.

Carmel city spokesman Dan McFeeley said Tuesday that the city is not held responsible in any way for paying off the bonds. The original bond issue was for $112 million.

The Barrington is listed as a non-profit organization which provides property tax exempt status. Despite its original financing through the City of Carmel’s developer bonds and its tax exemption, the facility has still apparently experienced obligations far in excess of revenue.

The court action does not mean any immediate effect on residents. Normal operations are continuing.