The Cudahy YMCA will close effective January 31, the organization announced this morning.
From the press release …
As announced in June 2014, the YMCA of Metropolitan Milwaukee has been implementing a comprehensive restructuring plan designed to address its operating challenges, repay as much debt as possible and reposition the Milwaukee Y for the future. That plan called for the organization to establish a Milwaukee Y comprised of centers within (or very close to) the City of Milwaukee and sell off the majority of its owned real estate assets, including the South Shore Y, in order to pay down debt.
Since that time, the Milwaukee Y’s leadership diligently sought a new operator for the South Shore Y, but no buyers have come forward with an offer. While the Milwaukee Y has a deep appreciation for the passion and involvement of the South Shore Y community, it simply is not possible for the organization to continue operations and make the required investments to address the extensive deferred maintenance at the center and make the improvements needed for it to compete long-term. When the center is closed on January 31, it is anticipated that the building and related assets will be placed into a bank trust administered by BMO Harris Bank (or its designee), as agreed to in the Milwaukee Y’s plan of reorganization, which is to be considered by the Court on January 30. The bank trustee will have full authority and discretion to operate, lease, sell, assign or otherwise dispose of the South Shore facility or other trust assets.
“This was a very difficult decision, and one we didn’t come to without exploring all other options,” said Julie Tolan, president and chief executive officer of the YMCA of Metropolitan Milwaukee. “We are sincerely sorry for the impact this will have on our many loyal South Shore members and employees, and we pledge to work tirelessly over the next few weeks to ensure a smooth transition for all involved.”
Current South Shore Y members have the option to transition to a different Milwaukee Y center by January 31. Employees who cannot be retained at other centers will be offered severance.
I’ll post more details later.
This is obviously disappointing news, albeit not surprising. Please post your comments below.