By Tracy Record
West Seattle Blog editor

Back in February, we reported on new management for West Seattle’s historic senior-living complex, The Kenney, located north of Lincoln Park for 115 years. Midwest-based “turnaround” specialist SAK Healthcare had taken over, hired by The Kenney’s board and lender, after it spent nine years as part of East Coast-based Heritage Ministries. Now, another change – SAK is still in charge, but with a different role – as court-appointed receiver. The Kenney announced today that it’s been “placed into receivership” in connection with a King County Superior Court case filed by its lenders:

The Kenney was placed into a court-supervised receivership in order to ensure that the residents continue to receive the highest levels of care and service and to ensure the financial success of the facility. The Kenney’s commitment to providing exceptional care and maintaining a safe, comfortable living environment for our residents remains the top priority. The receivership process will allow The Kenney to stabilize its financial situation and implement necessary changes to strengthen that financial foundation. By doing so, the Kenney can continue to meet the needs of its residents and uphold the high standards of service that it is known for.

According to documents in the court case, which was filed five days ago, The Kenney has been in default for a year on more than $13 million in loans, and it hasn’t been paying vendors, at least two of which have gone to court. From the receivership-case documents:

There are approximately 66 people currently residing at the Community, each of whom receives varying levels of care from the staff based upon their medical condition and personal needs. A receiver is necessary to ensure that the Community remains open, that there is no gap in medical or health care provided to any resident, that no harm will come to any resident, and to manage the financial operation of the Community going forward until a new owner can be found to take over the management and operations of the Community.

SAK specializes in “rescuing … distressed” facilities in situations like this, the documents say. The announcement we received notes that “Affiliates of SAK West Seattle [the official name of the receivership entity] have been appointed receiver for senior living facilities in cases around the country.” It also quotes SAK founder/CEO Suzanne Koenig as saying, “Our team of experienced and compassionate professionals will work with existing staff and will continue to deliver the same level of excellence that the residents and their families have come to expect. We are confident that this financial restructuring will enhance the community now and in the future.” We hope to speak with her tomorrow to get answers to some followup questions.

For backstory, The Kenney had a $150 million reinvention plan more than 15 years ago. That plan was dropped after three years; in 2016, a smaller-scale expansion plan was introduced, even as The Kenney worked to get back to financial stability. That plan never came to fruition, either (and some of the land envisioned for new units instead was sold off). Other changes under previous management included closure of its skilled-nursing center in 2017.