The Scooter Store Files Bankruptcy




(New Braunfels, Texas)

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 company blames Obamacare and federal investigations as financial burdens.

Notably, the FBI, the office of the Inspector General, Texas State Troopers and agents from the Texas Medicaid fraud unit raided The Scooter Store offices in February and sent all workers home. An investigation into possible Medicare fraud reportedly commenced.