A 140-Location Daycare Chain, A 140-Acre Tree Farm, And A Mortgage Patent Portfolio That Went Live in the Last 48 Hours

The Situation: Arbor Valley Nursery, a 40-year-old family business, is in Chapter 11 due to a classic case of management deadlock and lender litigation.

They operate a 140-acre tree farm and multiple distribution centers, specializing in high-altitude plants for landscape contractors across 11 states. Not sure if this is really a failing business as much as it’s a healthy one trapped in a bad partnership.

The Opportunity: This is a prime acquisition for a strategic buyer (like a larger nursery, private equity firm, or a landscape supply company) looking to expand its footprint in the Mountain West.

The key assets are the 140-acre farm (valuable real estate), a mature plant inventory of 2,000+ varieties, and a built-in regional distribution network with 16 trucks.

The Play: The strategy is a full buyout or a stalking horse bid for the company’s assets in a 363 sale.

A buyer could resolve the management deadlock and litigation, inject working capital, and immediately gain a dominant position in the Colorado market.

Focus on the value of the land, inventory, and customer contracts with landscape contractors and municipalities.

Full Filing Details: View on Ch11.ai

The Situation: Kid City USA, a national daycare operator with 140+ corporate and franchise locations, filed for Chapter 11 after pandemic-era grants dried up and a $2M judgment hit their books.

With $112M in estimated annual revenue, this is a large, established player facing a liquidity crisis, not a fundamental business failure.

The Opportunity: This is a multi-faceted opportunity. A buyer could acquire the entire corporate portfolio, cherry-pick the best-performing locations, or buy the franchise rights.

The distress is driven by a cash crunch, meaning there are likely valuable, profitable daycare centers available at a discount.

The real estate portfolio alone (over 50 locations in Florida) is a significant asset.

The Playbook: For a PE firm or strategic acquirer in the education space, the play is to provide debtor-in-possession (DIP) financing to stabilize operations and then execute a buyout.

For smaller buyers, the opportunity lies in acquiring individual locations or franchise territories as they are potentially shed during the restructuring.

Keep an eye on the bankruptcy court for asset sales and lease auctions.

Full Filing Details: View on Ch11.ai

The Situation: This is a pure intellectual property play. Corbin L Young, LLC holds patents for a mortgage management platform and interactive gaming systems.

The company is currently in federal litigation against giants like Fannie Mae and Citizens Bank over its mortgage-related IP.

The Chapter 11 filing is likely a strategic move to protect the assets and fund the ongoing litigation.

The Opportunity: The value here isn’t in physical assets; it’s in the potential outcome of the patent litigation. A buyer could acquire the patent portfolio and the rights to the lawsuit. If the litigation is successful, the return could be substantial. This is a classic high-risk, high-reward scenario for a litigation finance fund, a patent aggregator, or a company in the fintech/mortgage space that sees value in the IP.

The Play: The strategy is to acquire the LLC or its patent assets out of bankruptcy.

This requires deep due diligence on the strength of the patents and the merits of the ongoing lawsuit. A buyer would essentially be funding the litigation in exchange for the potential upside.

This isn’t for everyone, but for the right buyer, it could be a lottery ticket.

Full Filing Details: View on Ch11.ai