(Updates with asset and debt amount in second paragraph.)

Dec. 6 (Bloomberg) -- Clare Oaks, operator of a continuing- care retirement community in Bartlett, Illinois, filed for bankruptcy protection to restructure its debt.

The not-for-profit company listed assets of $107.2 million and debt of $136.9 million as of June 30 in Chapter 11 documents filed yesterday in U.S. Bankruptcy Court in Chicago. Clare Oaks recorded revenue of $19 million for fiscal year ended June 30.

“Senior living facilities have experienced substantial declines in occupancy as a result of market changes,” Paul Rundell, chief restructuring officer of Clare Oaks, said in court papers. The filing came after the company failed to negotiate an out-of-court restructuring with its pre-bankruptcy secured lenders, Rundell said.

The community, which opened in 2007, was founded by members of the Sisters of St. Joseph of the Third Order of St. Francis, a Roman Catholic religious institute. An affiliate of Life Care Services LLC manages the community under a management agreement.

Continuing-care retirement communities provide senior citizens living accommodations and related health-care services during their retirement years, court papers show.

Entrance fees for residents range from about $170,000 to $270,000 based on the size of the unit. In addition, occupants pay monthly fees ranging from about $1,300 for independent living units to as much as $7,390 for memory care residents, court papers show.

The case is In re Clare Oaks, 11-48903, U.S. Bankruptcy Court, Northern District of Illinois (Chicago).

--With assistance from Phil Milford in Wilmington, Delaware. Editors: Andrew Dunn, Glenn Holdcraft

To contact the reporter on this story: Dawn McCarty in Wilmington, Delaware, at dmccarty@bloomberg.net

To contact the editor responsible for this story: John Pickering at jpickering@bloomberg.net.