Huntsville YMCA filing for bankruptcy protection

HUNTSVILLE, Ala. ( WHNT ) — Heart of the Valley YMCA says it has filed for Chapter 11 bankruptcy protection.

“Today, the Huntsville YMCA, also known as the Heart of the Valley YMCA, is seeking Chapter 11 protection in U.S. Bankruptcy Court for the Northern District of Alabama in Huntsville,” the organization said in news release. This was an extremely difficult decision for the YMCA Board of Directors – a group of committed volunteers who live and work in this community – but it is the right decision for the future of our YMCA.”

The organization said throughout the board’s process it focused on the goal of giving the community a stronger, healthier YMCA.

Heart of the Valley said all YMCA facilities, programs and services will remain operational without interruption.

The organization said the move comes as it is facing financial challenges.

“A large mortgage note, signed more than a decade ago, is coming due,” The YMCA said. “This will deplete cash reserves, which has been noted by the Y’s auditor as a going concern.”

Heart of the Valley said membership has also dropped since the pandemic, with nearly 30 percent fewer members now than in 2019. The organization said maintenance and repair needs and costs are also increasing.

“We appreciate our lender, who tried to be helpful, but we could not reach an agreement for the Y to remain operational and plan for future sustainability,” the organization said. “We believe seeking Chapter 11 protection is an important first step toward restoring our Y’s operational and fiscal health.”

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