PITTSBURGH — The YMCA of Greater Pittsburgh has filed for bankruptcy protection and will close its downtown Pittsburgh facility in June, the organization announced Wednesday.
Officials said they filed for Chapter 11 bankruptcy in U.S. Bankruptcy Court Tuesday and plan to reorganize so it can continue to provide services and programs to the community.
The YMCA’s downtown facility, Downtown Y, at 236 Fifth Ave., will close June 8. Those employees will be transferred within the organization’s other 11 facilities, officials said. Its center, camps, before-and after-school care, and wellness programs will continue to operate uninterrupted.
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President Kevin Bolding said closing the Fifth Avenue facility will save them close to a million dollars a year.
One hundred employees will be affected, but it's not clear how many will lose jobs or be transferred.
The organization will take the steps necessary to ensure employees and vendors will be paid in a timely manner.
The YMCA has faced significant operating challenges since 2005, and has taken several steps to reduce its financial burden, officials said. These steps include reducing staff and benefits and implementing pay freezes, but the financial issues continue.
Bolding said these challenges are not just a YMCA problem, but a nonprofit one.
"I think there's lots of nonprofits struggling with hard decisions like how to manage, manage assets, how they manage physical properties," Bolding said.
In its bankruptcy filing, the YMCA of Greater Pittsburgh lists estimated assets between $50 million and $100 million and liabilities of $10 million to $50 million.