Southfield, Mich. With nine of its 12 locations closed, superstore MedMax Inc. has filed for Chapter 11 bankruptcy protection and is seeking a buyer for either the entire company or its home medical equipment business.

The company also replaced its founder and chief executive officer Kevin Browett with Michael Jacoby, a partner with Phoenix Management Services, a Philadelphia-based turnaround company.

MedMax has incurred $3.7 million in debt with about 1,000 creditors, including HME providers with whom it subcontracted, advertising outlets and greeting card companies, according to the March 26 U.S. Bankruptcy Court filing.

The 21/2-year-old HME and wellness products chain has never made a profit, MedMax officials told the Detroit Free Press. Financial problems worsened in the last few months, they said, creating payroll and bill-payment difficulties. About 130 of MedMax's 230 employees have been let go, Jacoby said.

The company has about 7,000 home care products in patients' homes on a rental basis, and Jacoby said MedMax will continue to service these customers until a buyer is found.

Meanwhile, MedMax advertised 25 percent-off sales at its three remaining locations in Troy, Mich., Philadelphia and Pittsburgh. "We're trying to move as much merchandise through the stores as we can," Jacoby said.

MedMax's product mix, combined with the costs associated with running multiple 18,000-square-foot locations, led to its failure, according to HME retail consultant Mike Smith of Gladson and Associates. "Also, it boils down to the fact that health care is a personal thing," he said. "You don't want to run into your neighbor with your cart full of Depends and ostomy products."