GVO Partners - Chapter 11 Case Summary
GVO Partners has filed for Chapter 11 bankruptcy following disputes with its investors, physician partners, and senior lender Firstrust Bank, including pending litigation in which Firstrust seeks damages and the imposition of a receiver, amid oppressive merchant cash advance obligations. The Debtors are pursuing a going-concern Section 363 sale to maximize value and are seeking authority to use cash collateral in which Firstrust asserts a valid, perfected security interest.
Business Description
Headquartered in Summerville, SC, GVO Partners LLC ("GVO Partners"), together with certain of its affiliates that are debtors and debtors in possession (collectively, the "Debtors"), is a managed services organization that manages and operates a group of medical aesthetics practices.
- The Debtors partner with, invest in and operate medical aesthetics, cosmetic dermatology and plastic surgery clinics in multiple regions of the United States, enabling partnering physicians to grow their practice, achieve financial goals and explore exit opportunities.
- GVO Partners itself is an independent investment management firm that partners with and invests in medical aesthetics, cosmetic dermatology, and plastic surgery practices across the United States.
The Debtors are led by Joseph Sciamanna, who serves as Chief Executive Officer and Manager of GVO Partners and certain of its affiliates. The Debtors commenced these cases by filing voluntary petitions for relief under chapter 11 on June 16, 2026, in the U.S. Bankruptcy Court for the District of Delaware (Case No. 26-10976 (KBO); joint administration requested).
Corporate History
GVO Partners was co-founded in 2022 by Joseph Sciamanna, its Chief Executive Officer, who has been responsible for GVO Partners' strategy and operations and its partnerships with affiliated practices since its founding.
Founder Background
- Sciamanna has spent his career as an entrepreneur and healthcare investor, founding, operating, and exiting ventures across multiple sectors.
- He began his career in 2021 when he founded and subsequently exited Heliostatix, a healthcare technology venture.
- He also founded and built 4-Wall Health Care, including the development and multi-market expansion of Impact Behavioral Health, an applied behavior analysis therapy company.
- Through these ventures, he gained extensive experience in business management, operations, branding, and the expansion of healthcare companies from startup to multi-market scale.
- Sciamanna attended Harvard Business School, where he began GVO Partners, and holds a degree in Chemical Engineering from the University of Maryland.
Acquisition History
Between April 2023 and April 2024, GVO acquired three medical spa and plastic surgery practices:
- GVO Urban, LLC ("GVO Urban") in Charlotte, North Carolina;
- Sweetgrass Plastic Surgery & Spa in Charleston, South Carolina ("Sweetgrass"); and
- Still Waters Day & Medical Spa in Pensacola, Florida ("Still Waters").
Each of these acquisitions was financed with equity from Sciamanna and other investors in GVO Partners and with debt financing from three loans from Firstrust Bank ("Firstrust"). Each of the businesses initially performed well following acquisition.
Organizational Structure
The Debtors are affiliated entities. GVO Partners is the ultimate parent and owns 100% of the equity of GVO Topco, which in turn owns 100% of the equity of GVO Holdings Group LLC ("Holdings"), which holds 100% of the equity of (i) GVO Urban, LLC, (ii) GVO Sweetgrass, LLC, and (iii) GVO Still Waters, LLC.
- Urban Medspa & Weight Loss Center Charlotte, P.C., is an affiliate of the foregoing entities through common ownership with GVO Partners.
Prepetition Obligations
The Firstrust Loans
The Debtors are obligors under three separate loans from Firstrust with aggregate indebtedness of not less than $9,979,767.75. In each case, Holdings is the borrower, the obligations are jointly and severally guaranteed by each of the other Debtors, and the obligations are secured by first priority liens in substantially all of the Debtors' assets.
- Initial Firstrust Loan: Entered into as of June 20, 2023 for a principal amount of $1,900,000.
- As of January 21, 2026, Firstrust asserted the aggregate amount outstanding to be $1,693,826.03, with further unpaid amounts, including interest, fees, or expenses, continuing to accrue thereafter.
- Second Firstrust Loan: Entered into as of August 28, 2023 for a principal amount of $4,850,000.
- As of January 21, 2026, Firstrust asserted the aggregate amount outstanding to be $4,450,858.25, with further unpaid amounts continuing to accrue thereafter.
- Third Firstrust Loan: Entered into as of March 29, 2024 for a principal amount of $4,100,000.
- As of January 21, 2026, Firstrust asserted the aggregate amount outstanding to be $3,851,700.90, with further unpaid amounts continuing to accrue thereafter.
The SouthState Loan
- Effective as of August 13, 2025, Debtor GVO Sweetgrass, LLC and nondebtors Sweetgrass Plastic Surgery, LLC, and Dennis Schimpf, PC (now known as Craig Blum, PC) executed and delivered the Promissory Note dated August 13, 2025 (the "SouthState Note"), in the principal amount of $380,000, to SouthState Bank, National Association ("SouthState").
- As of the date of the declaration, the aggregate amount outstanding under the SouthState Loan is approximately $340,814.31 in principal, plus any unpaid interest, fees, expenses or other amounts due or incurred in connection therewith.
- Pursuant to the Commercial Security Agreement dated August 13, 2025, SouthState holds a security interest in substantially all assets of the SouthState Borrowers. The Debtors believe that SouthState has failed to perfect its security interest with respect to any assets of the Debtors, or that any such interest was not timely perfected and is subject to avoidance.
Merchant Cash Advance Loans
Certain Debtors are party to a number of merchant cash advance loans (each, an "MCA"). The Debtors believe that the MCAs are usurious, are not enforceable or are subject to subordination, and that the Debtors have claims for damages against the respective MCA lenders. While the MCA lenders may purport to have security interests in some or all of the Debtors' assets, none have perfected any security interest in any of the Debtors' assets, or such interest was not timely perfected and is subject to avoidance. The MCAs are described below.
- GVO Still Waters:
- First Everest Loan: A Revenue Based Financing Agreement dated April 28, 2026 with EBF Holdings, LLC d/b/a Everest Business Funding ("Everest"), under which Everest asserts indebtedness of $79,326.60.
- Monday Funding Loan: A Standard Merchant Cash Advance Agreement dated April 30, 2026 with Monday Funding LLC ("Monday Funding"), under which Monday Funding asserts indebtedness of $31,305.
- SBFS Loan: A digital loan agreement entered into in April 2026 with SBFS, LLC ("SBFS"), under which SBFS asserts indebtedness of $40,000.
- GVO Sweetgrass:
- Family Funding Loan: A Standard Merchant Cash Advance Agreement dated May 12, 2026 with Family Funding Group LLC ("Family Funding"), under which Family Funding asserts indebtedness of $27,000.
- GVO Urban Medspa & Weight Loss Center:
- First Retro Loan: A Future Receivable Sale and Purchase Contract dated May 14, 2026 with Retro Advance Inc. ("Retro Advance"), under which Retro Advance asserts indebtedness of $138,553.36.
- Second Retro Loan: A Future Receivable Sale and Purchase Contract dated May 27, 2026 with Retro Advance, under which Retro Advance asserts indebtedness of $74,000.
MCA Settlement Agreement
- The Debtors, Dennis Schimpf PC d/b/a GVO Sweetgrass Plastic Surgery, Joseph Sciamanna and Unique Funding Solutions LLC ("UFS") are parties to the Settlement Agreement dated March 31, 2026 (the "UFS Settlement"), pursuant to which UFS asserts that the Debtors are indebted to UFS in the amount of $331,668.63.
Events Leading to Bankruptcy
Investor, Physician, and Lender Disputes
Beginning in late 2024 and continuing through early 2026, disputes arose among the Debtors, certain of their investors, and several physician partners. Concurrently, disputes arose between the Debtors and Firstrust regarding the Debtors' loan obligations.
- These disputes materially disrupted the Debtors' operations, caused significant revenue loss, and prevented the Debtors from closing a refinancing transaction that would have satisfied Firstrust's debt.
- On March 10, 2026, Firstrust commenced a civil action against the Debtors, captioned Firstrust Bank v. GVO Holdings Group, LLC, et al., Civil Action No. 2026-0315-LWW (the "Firstrust Action"), seeking damages for alleged breaches of contract and the imposition of a receiver over the Debtors' assets.
Chapter 11 Filing and Go-Forward Strategy
Faced with ongoing litigation, oppressive terms under certain merchant cash advance agreements, and attendant challenges to maintaining their businesses as going concerns, the Debtors commenced these Cases to effect a going concern sale and maximize value for the benefit of all creditors.
- The Debtors believe that a sale as a going concern under the Bankruptcy Code will deliver a value-maximizing result for the Debtors' estates, creditors and other stakeholders.
- Without the use of cash collateral, the Debtors lack the cash to effect a going concern sale pursuant to section 363 of the Bankruptcy Code.
- The Debtors believe that the interests of Firstrust, which is the only party with valid, perfected security interests in any such collateral, will benefit from an orderly sale process as contemplated by the Debtors as compared to a forced liquidation alternative.
Need for Use of Cash Collateral
The Debtors require the use of cash collateral to ensure sufficient working capital to operate their businesses, preserve and maximize the value of their estates, administer their estates, and achieve confirmation of a chapter 11 plan.
- The Debtors' liquidity needs include payments to employees, third-party vendors, landlords, utilities, taxing authorities, and insurance companies, among others, who provide the essential services needed to operate, maintain, and insure the Debtors' assets.
First Day Motions
Contemporaneously with the filing of the Declaration, the Debtors have filed or will file the First Day Motions to minimize disruption to operations and preserve estate value. The First Day Motions are:
- Joint Administration;
- Creditor Matrix (authorizing a consolidated creditor matrix and Top 30 Creditors List, and redaction of certain personal identification information);
- Cash Management;
- Utilities;
- Insurance;
- Employee Obligations;
- Taxes;
- Customer Programs; and
- Critical Vendors.
Among other things, the motions seek authority to use cash collateral, honor workforce-related compensation and benefits obligations, pay claims of certain critical vendors, suppliers, and taxing authorities, continue certain customer programs, and continue the Debtors' cash management system and other operations in the ordinary course of business. For the avoidance of doubt, the Debtors request authority, but not direction, to incur indebtedness or satisfy obligations with respect to the relief requested.