As the YMCA of Metropolitan Milwaukee continues to climb out of a $30 million debt, the organization has announced that a Sept. 29 court-appointed auction intended to place a number of its locations up for bid has been cancelled.
The YMCA has not secured any new qualified bidders to take part in the auction for its Southwest, Tri-County, West Suburban and Feith Family YMCA sites.
The deadline to submit bids was Monday.
The organization will forge ahead with offers from the YMCA of Central Waukesha County and the Kettle Moraine YMCA. A court hearing on Sept. 30 will put those offers on the table.
In August, the YMCA of Metropolitan Milwaukee announced that the YMCA of Central Waukesha County is pursuing the Southwest, Tri-County and West Suburban YMCA sites for a total purchase price of $7 million in cash at closing, plus an earn out of up to $1 million based on those facilities’ earnings for calendar years 2014-2016.
The YMCA of Metropolitan Milwaukee also announced that the Kettle Moraine YMCA hopes to buy the Feith Family Ozaukee YMCA for $2 million in cash at closing, pending financing and fundraising contingencies.
The YMCA of Metropolitan Milwaukee expects both transactions to close by Oct. 15, pending court approval. Part of the sale proceeds will help the organization overcome its debt.
“This process has reaffirmed that the offers from the Waukesha and Kettle Moraine Y’s represent the fair value of these properties,” Julie Tolan, president and CEO of the YMCA of Metropolitan Milwaukee, said in a statement. “We are grateful that kids, families and seniors at these facilities will all continue to enjoy their Y, and the community programming, outreach, scholarship and other factors that make the Y unique will be preserved. Equally as important, the offers to purchase these facilities both contain agreements to retain substantially all employees as well as agreements to honor all membership contracts. We look forward to completing these transactions – the proceeds of which will be used to pay down our debt – and to continuing our efforts to reemerge from Chapter 11 a stronger, more focused, financially-viable Y.”