Landmark Recovery Files Bankruptcy Amid Missed Rent Fight with Sabra Health Care REIT

The once-ascendant, long-troubled addiction treatment provider Landmark Recovery has filed for bankruptcy for at least some of its corporate entities, according to public documents.

The company’s application for bankruptcy protection marks a critical development in the company’s legal troubles, particularly with its landlords. The dispute at the heart of the bankruptcy involves one of the largest health care landlords in the nation: Sabra Health Care REIT Inc. (Nasdaq: SBRA).

The first-day filing declaration, penned and signed by founder and CEO Matt Boyle, blames Sabra Health Care REIT for inappropriately assessing the rent owed by Landmark Recovery and the “cross-collateralization” of several facilities for which Sabra is the landlord.

Boyle and the attorney representing Landmark Recovery have not responded to a request for comment. Sabra Health Care REIT has also not responded to a request for comment.

The company alleges that Sabra Health Care REIT is requiring Landmark Recovery of Colorado LLC and Landmark Recovery of Arkansas LLC to cover the debts of other Landmark entities that have obligations with Sabra. Court documents specify that Landmark Recovery of Louisville LLC is a co-debtor with the Arkansas and Colorado entities. It also specifies that the Louisville entity owns the other two.

Landmark Recovery of Colorado owns facilities both in Colorado Springs and Aurora, Colorado. Landmark Recovery of Arkansas owns and operates a facility in Morrilton, Arkansas.

Landmark Recovery reportedly owes $1 million in rent for facilities that were never opened “because SABRA did not provide tenant improvement funds,” the declaration states. The company has also struggled with making rent payments on time in the past. The Arkansas facility has been current on rent since September 2024, while the Aurora facility has been current since December 2024, and the Colorado Springs facility is current as of July 1, 2025.

Landmark Recovery further alleges that Sabra Health Care REIT is misinterpreting the organizations’ lease covenants by alleging that all of Landmark’s entities are in default when only some entities are in default.

Sabra Health Care REIT delivered notice to Landmark Recovery that it intended to terminate all leases after talks on settling the owed rent, which began in April, broke down, according to the declaration.

Boyle also claims in the declaration that Sabra Health Care REIT has refused payment.

“Debtors filed these cases because, on August 20, 2025, SABRA threatened to take litigation actions that would dispossess the Debtors of their facilities, resulting in disruption to patient care and risking a profitable business enterprise,” the declaration states.

A check of federal and state-level court systems does not show a suit filed by Sabra Health Care REIT as of the writing of this article.

Boyle states in the declaration that the entire entity under the parent organization Landmark Recovery of Louisville is profitable. The Colorado and Arkansas entities are also apparently profitable on a standalone basis.

“It is just that certain facilities within the enterprise are not,” the declaration states.

The Colorado facilities each care for approximately 80 patients, collectively generating $56 million in revenue last year, and have generated about $31.4 million as of the filing date for the bankruptcy application. These facilities employ about 100 people each. However, the petition application for the Colorado entities specifies three facilities in the state, specifically a second Colorado Springs facility not mentioned in the declaration.

The Arkansas facility employs approximately 75 people, cares for around 75 patients, has generated $5.3 million as of the filing date and reported $9.2 million in revenue in 2024.

The bankruptcy filing also gives a small glimpse into a potentially significant but unheralded change within Landmark Recovery.

In July, the company declared on its website that: “Landmark Recovery has been sold, and all locations are under new local leadership.” Sources familiar with the company told Behavioral Health Business that the company has been altering its corporate structure.

At the same time, Landmark Recovery abandoned its “Landmark Recovery of” and “Praxis by Landmark Recovery” branding on its facilities website. Rather, the facilities have a forest-focused branding angle.

Here are the previous and current names of the facilities in question in the bankruptcy:

Colorado

— Landmark Recovery of Colorado (Aurora) is now Sheridan Grove Recovery.

— Landmark Recovery of Colorado Springs is now Spring Grove Recovery.

— Praxis of Colorado Springs by Landmark is not listed on the Landmark Recovery website. The facility was once owned by Sabra Health Care REIT but no longer appears on the company’s published list of facilities on its website.

Arkansas

— Praxis Recovery of Little Rock is now Hickory Grove Recovery.

The bankruptcy documents specify that there is a new managing entity over all of Landmark Recovery: Alsos Behavioral Management. Boyle identifies himself as the CEO Alsos. According to the declaration, Alsos manages Landmark Recovery of Colorado and Landmark Recovery of Arkansas provide management, bookkeeping and recordkeeping services.

If Landmark Recovery did sell, the bankruptcy documents do not reveal to whom.

The documents identify Clifford Boyle, Matt Boyle’s father, as the chairman of the Colorado and Arkansas entities.

The bankruptcy adds to an increasingly long list of woes for the company over the last two years. These include a patient murdering another patient in a Louisville, Kentucky, facility, being evicted from facilities in Las Vegas and Oklahoma, being sued by one of the nation’s largest institutional pharmacies and losing licensure and operations of three Indiana facilities after a string of patient deaths and ex-client complaints.