Central Falls Detention Facility Corp., operator of the Donald W. Wyatt Detention Facility in Rhode Island, has filed for Chapter 11 bankruptcy protection, citing an inability to manage its substantial debt.

The company owes more than $167 million in bond debt, a burden it says prevents it from continuing operations. The facility, established by the state of Rhode Island, houses up to 782 federal detainees, including individuals arrested by U.S. Immigration and Customs Enforcement.

This bankruptcy filing highlights financial distress within private prison operators and raises questions about the sustainability of their business models, particularly concerning long-term debt obligations. Investors and government contractors will monitor the proceedings for potential impacts on similar facilities and the broader correctional services sector.