Boys & Girls Club of Leech Lake Area: 'Cash-flow problem' causes temporary closure of operation
The Boys & Girls Club of the Leech Lake Area has been temporarily closed.
The closure is due to a "cash-flow problem," according to a press release.
The Boys & Girls Club of the Leech Lake Area has four locations: Cass Lake, Walker, Deer River and Eagleview in Squaw Lake.
The Walker site's summer program is still open and the Eagleview program will remain open for two more weeks, said Kate Virkus, the vice chairwoman of the board of directors.
A re-opening date has not yet been set.
The temporary closure is "due to the fact that a number of receivables have not come in as anticipated and it has created a cash-flow problem," stated a press release issued Tuesday by James R. Chase, the chairman of the board of directors.
"If you look around the country you will find many businesses and especially nonprofits are struggling to survive during this recession," the press release continued. "They are looking at how they do business and the hard decisions that need to be made in order to continue operating."
A meeting is planned tonight, Virkus said, to discuss a timeline for the closure and the future of the club, which has offered after-school and summertime programs for youth.
More than 1,200 area youth have been served at the Boys & Girls Club of the Leech Lake Area since it opened Jan. 5, 2000, according to the press release.
Virkus said the financial troubles are due to some of the Boys & Girls Club's grants that were not renewed and others that were not awarded.
"Our Boys & Girls Club is an organization that is almost 100 percent grant funded and the current recession or economic downturn is making it even harder to find and maintain funding for our programs," Chase said in the press release.
Virkus said the board of directors knew of the financial troubles facing the club, but they recently "came to a head."
"We've been fighting it for a little bit now," she said.