The State newspaper reported that the Magnolias Assisted Living in Myrtle Beach officially closed their doors last week after giving their elderly residents just 48 hours to vacate. Magnolias manager Ben Read issued a letter to residents, families and employees explaining that residents would have to move out by 5 p.m. Wednesday. He said the facility’s former administrator Denise Graham was to blame for the abrupt closure.
“While still employed by Magnolias, Denise proceeded to contact Magnolias residents and families telling them that their loved ones wanted to leave Magnolias and follow her to Carolina Gardens,” the letter stated. “We have lost virtually all of those residents which in turn decimated Magnolias cash flow to remain in operation.”
Read said the business lost over $40,000 in revenue when roughly 20 residents followed Graham to Carolina Gardens. The business also exhausted more than $35,000 in external borrowings and all personal and family funds in the last 45 days to maintain operations.
Read also said a potential sale fell through at the last minute.