The YMCA of Greater Pittsburgh recently announced it has filed Chapter 11 bankruptcy and will close its Fifth Avenue facility in downtown Pittsburgh on June 8.
In a media release called "A Stronger Us," representatives from the nonprofit said a formal bankruptcy filing is the most efficient way for the organization to financially regroup.
"A reorganization will allow the Y to evaluate our current operations to exit this process with the best decisions for the good of the community as well as the YMCA," the release said. "Reorganizing will strengthen the Y, creating a more financially secure, mission-focused, charitable organization that concentrates its resources on a sustainable physical footprint to pave the best path forward."
Other than its downtown facility, the Y's other 11 locations will remain open, and downtown members can use any of those.
"This is a leased space, and although it is a wonderful facility, operating costs and rent are far greater than revenue, placing a severe strain on all YMCA operations," the release said of the downtown facility.
Y staff are actively contacting downtown members to discuss their membership contracts, the release said. The Y is also attempting to transfer as many employees as possible to other facilities.
The downtown facility claims 2,000 members and 100 employees, many of which are part-time, according to a report by 90.5 WESA.
"I think there's lots of not-for-profits around the country that are struggling with hard decisions around how they manage assets and how they manage physical properties," Y President and CEO Kevin Bolding told 90.5 WESA. "As for YMCAs, there are some across the country that have had to face similar hard decisions as we're facing today."
The Y's liabilities are between $10 million and $50 million with assets of $75 million, 90.5 WESA reported. Closing the downtown facility will save the organization at least $750,000 annually.
"Chapter 11 offers the Y the potential to emerge a stronger organization that could continue serving the city for years to come," a May 13 column in the Pittsburgh Post Gazette said. "[T]he Y needs to right-size. It operates a bigger physical plant than other Ys its size, and shedding the fitness center, which occupies leased space at 236 Fifth Ave., will help cut costs."