Posted: Mar 20, 2013 2:40 PM by Associated Press
SAN ANTONIO (AP) - A seller of motorized wheelchairs and mobility scooters that was raided by federal agents last month has notified workers that their jobs are being eliminated.
Martin Landon, CEO of The Scooter Store, said in an email to employees Tuesday night that the layoffs take effect March 31, according to the San Antonio Express-News. The majority of the employees, about 1,200, work at company headquarters in New Braunfels, about 30 miles northeast of San Antonio.
Landon said the company will continue operations, but it wasn't clear how it plans to restructure. A statement that The Associated Press received Wednesday from the company said distribution centers are open and serving customers.
"Over the last week we have reached a formal agreement with our lenders that would fund our core operations while the company develops a viable business model for the healthcare sector," Landon said in the email.
The announcement is the latest in a string of setbacks for a company that has seen its commercials become familiar television fixtures.
About 1,800 workers were furloughed March 8 but some 300 of them were brought back to work last week. Last month, about 150 federal agents descended on the headquarters in what's believed to be an investigation into Medicare and Medicaid fraud. Authorities have declined to speak about the matter.
A call Wednesday to FBI offices in San Antonio was not immediately returned. Landon has said federal authorities told the company that it's not the focus of the investigation. Scooter Store officials have denied wrongdoing and defended their business practices.
The Scooter Store has been struggling with cuts in reimbursement rates and changes in processing procedures implemented by the Centers for Medicare and Medicaid Services, according to the Express-News.
Information from: San Antonio Express-News, http://www.mysanantonio.com
(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)
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