MARQUETTE, MI-- The YMCA of Marquette County has declared bankruptcy.
In a statement released Friday morning CEO Jenna Zdunek said while the Y has been able to pay off some debt incurred by previous leadership, the amount remaining is overwhelming.
The entirety of Zdunek’s press release is as follows:
[MARQUETTE, May 5th] – "As many of you know the YMCA of Marquette County has gone through a lot of change in the last 14 months. We have made significant effort and progress toward reducing our total debt. Every option has been thoroughly and thoughtfully discussed. This next step is the most effective vehicle for us to ensure our continued viability and sustainability in the community.
"We are writing to inform you that the YMCA of Marquette County filed for Chapter 11 reorganization today. After looking at all our options we determined that the aggressive expansion and extreme debt that was incurred by the previous leadership forced us to take this action. Also, the inherited pending legal cases. While it is a difficult decision for our board of directors, it is the right decision for the future of our YMCA. This reorganization is the most effective way to have a strong Y and serve the community in the future.
"We would like to take this opportunity to explain our actions and what it means for you, as a valued member of the Y.
"Much has been done to address our challenges, like the sale of the Wright Street Child Care Center Property and the new CEO and Board leadership transition. We are grateful for the cooperation in reconciling and resolving our debt with our suppliers and vendors. Because of these efforts the Y is currently operationally sound, but cannot sustain the inherited debt of $4.8 million.
"Our YMCA’s goal in this process is to give the communities we serve a stronger, healthier Y. This decision does not impact our daily operations, which will continue without interruption. While we work through this process our doors will remain open. Our staff is fully committed to providing the same safe, high-quality programs and services you have come to expect from the Y.
"The next steps in this process will be determined by the Bankruptcy Court for the Western District of Michigan. We will keep you posted on developments.
"Our YMCA feels privileged to continue serving the children, families and communities of Marquette County since 1995. We are incredibly grateful for the support we have received from members like you. We hope the Y will continue to be an important part of your life for many years to come."
A press conference is being held at the YMCA Friday at 1:30 p.m.
