610SPOR2 35h_CBSSportsRad_Houston

News

Scooter Store Files For Bankruptcy Following Congressional Scrutiny

View Comments
Scooter Store website. (credit: Scooter Store)

Scooter Store website. (credit: Scooter Store)

Featured Items

77820352_8PHOTOS: The Bikini: from the '50s to Now

77820352_8Meet The 6-10s

77820352_8Best 7 Events At The Astrodome

77820352_8World Cup's Hottest Fans

From Our CBS Music Sites

77820352_8Is Chandler Parsons Dating A Kardashian??

77820352_8Nicki Minaj's Booty Takes Over Her Album Cover

77820352_8The Worst Things You Can Do On A First Date

77820352_8Local Gas Station Clerk/MMA Fighter Takes Down Thieves

Get Breaking News First

Receive News, Politics, and Entertainment Headlines Each Morning.
Sign Up

NEW CASTLE, Del. (AP) — The Scooter Store, a Texas-based company that supplies power wheelchairs and scooters to people with limited mobility, has filed for Chapter 11 bankruptcy protection.

Monday’s bankruptcy filing in Delaware comes after federal agents raided the company’s South Texas headquarters earlier this year, and amid congressional scrutiny of whether TV ads by The Scooter Store and a rival company target people who don’t need scooters, leading to hundreds of millions of dollars in unnecessary Medicare spending.

The Scooter Store has shed hundreds of jobs in recent months, with its workforce dwindling from about 2,400 down to about 300.

The company’s bankruptcy filing cited changes in health care laws and government investigations as financial burdens. It listed assets between $1 million and $10 million, and liabilities between $50 million and $100 million.

(© Copyright 2013 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

View Comments
blog comments powered by Disqus