An auction is set for Sept. 29 for four branches of the YMCA of Metropolitan Milwaukee. The four Ys have purchase offers from two neighboring YMCAs.
The auction is by an order from the U.S. Bankruptcy Court for the Eastern District of Wisconsin, which has accelerated the sale process. Bids for the four Ys are due Sept. 22.
The YMCA of Metropolitan Milwaukee filed for bankruptcy in June, listing a debt of $29 million. It provided an update on its restructuring plan earlier this month.
Heritage Equity Partners, an investment banking company based in Easton, MD, has been retained to solicit offers for the four Ys, according to a press release. The four Ys that will be auctioned are the West Suburban YMCA in Wauwatosa, WI; the Southwest YMCA in Greenfield, WI; the Tri-County YMCA in Menomonee Falls, WI; and the Feith Family Ozaukee YMCA in Port Washington, WI.
Those four Ys have purchase offers from the YMCA of Central Waukesha County and the Kettle Moraine YMCA. According to the Milwaukee Journal Sentinel, the Kettle Moraine YMCA has submitted an offer to purchase the Feith Family Ozaukee YMCA for $2 million, and the YMCA of Waukesha County has offered to purchase the other three Ys for $7 million in cash at closing, with an additional $1 million based on earnings over the next two years. The Kettle Moraine Y has launched a Save the Y campaign to raise $1 million in the next month to help finance the purchase of the Feith Family Ozaukee Y, the Journal Sentinel reported.
If no higher and better bids are found by Sept. 29, the YMCA will seek court approval to close on the existing offers, according to Heritage Equity Partners.