The North Central Florida YMCA, which operates three facilities in Gainesville, FL, has filed for Chapter 11 reorganization.
Financial statements published on the nonprofit’s website show that it has been operating at a loss for several years. Its revenue before expenses dropped from $5.8 million in 2006 to around $3.2 million in 2009, according to a story in The Gainesville Sun newspaper, which also reported that the nonprofit in the last few years has closed facilities, stopped construction on a new facility, fired its chief executive and chief financial officers and once failed to meet payroll.
In a press release announcing the board’s decision to file for bankruptcy, the Y blamed the recent recession for its current financial problems.
“Like so many businesses and organizations in our area, the North Central Florida YMCA has been adversely affected by the economic recession,” the release stated. “Declines in membership and donations over the past few years have presented financial challenges, but we believe the action we have taken today is an important first step in restoring our Y’s operational and fiscal health.”
The release also stated that the filing would not affect the facilities’ daily operations or service to members.