Community Dental Offers to Buy 5 of DHA’s 8 Clinics

DHA Dental Inc., the operator of eight dental clinics in Orange, Los Angeles and Riverside counties now in Chapter 11 bankruptcy, said it has received an offer from Torrance-based Community Dental Services Inc. to purchase five of its clinics for $400,000.

The five clinics are in Santa Ana, Anaheim, Costa Mesa, Covina and Bellflower. Not included are DHA clinics in Orange, Carson and Riverside.

DHA has been soliciting bids for the clinics since July, three months after it filed a Chapter 11 bankruptcy petition because it was unable to pay $1.7 million in federal and state taxes. Chapter 11 allows a company to continue operating while developing a plan to repay its debts and reorganize.

“DHA is seeking court authorization to sell its eight clinics,” said Robert Opera, an Irvine bankruptcy attorney representing DHA.

An essential part of the agreement is to preserve the continuity of patient care, Opera said.

“The prospective buyer, Community Dental Services, has agreed to continue treatment of existing DHA patients in all of the DHA clinics,” he said. The company said it has about 10,000 patients at its clinics.

Community Dental is affiliated with Smile Care Dental Group, also of Torrance.

Last year, DHA listed sales of $20 million and debts of $17 million. The company’s eight clinics currently employ about 60 dentists among its 300 employees.

Opera said the company would prefer to sell the clinics, if possible, to one or two buyers rather than piecemeal.

“We’re hopeful of preserving as many jobs as possible through the sale of the business rather than going through a liquidation of the assets,” said Donald A. Patrick, DHA’s acting chief operating officer.

A hearing on the motion to sell the DHA clinics has been set for Nov. 21 in Santa Ana.