Goodwill Industries of Southern Nevada Inc., owner of the local Goodwill retail store in Pahrump, filed for Chapter 11 bankruptcy reorganization on Friday.
The Goodwill Thrift Store &Donation Center at 1201 S. Loop Road is one of more than a dozen stores in the Las Vegas and Pahrump areas that are part of a Chapter 11 by the nonprofit 501 (c)(3) filing on Aug. 11 with the U.S. Bankruptcy Court for the District of Nevada.
“Higher operating costs, increased debt, and the slumping retail industry have led us to the tough choice to file Chapter 11,” said John Helderman, who was named Goodwill of Southern Nevada’s interim CEO at the end of May, in a written statement.
Goodwill has retained Larson and Zirzon LLC to help develop their reorganization plan.
Goodwill’s board of directors supported “moving forward with plans to voluntarily file for reorganization and implement a plan to strengthen our financial situation, streamline our operation, improve our retail business and grow our mission,” said Helderman.
The status of that project is unknown, and spokesman for the nonprofit could not be reached for comment.
According to a news release from the company, “job seekers, shoppers and donors should expect business as usual.”
Goodwill employs roughly 1,000 people in Las Vegas and Pahrump.
Dating back 42 years
The nonprofit was founded in 1975 and accepts donations of goods, which it sells to help individuals in Southern Nevada withfree job training and placement services for the unemployed. In 2016, the company assisted more than 14,000 individuals with job training and placed more than 3,000.
“Over the last five years, we strategically expanded our donated goods retail business,” the nonprofit said in a news release. “In fall of 2016, our stores began to experience a decline in sales corresponding with the nationwide retail downturn.”
The company has made several moves to get into positive territory. So far, none have been successful, according to a news release from the nonprofit.
One of those changes was hiring Helderman, who replaced Steve Chartrand. Chartrand was with Goodwill for about two decades. The circumstances that led to his exit are unknown.
Goodwill also named Beattie Dustin as new chief financial officer in March 2017.
Helderman and Chartrand’s arrival in the company were set to “add a fresh perspective and drive necessary change.”
Also during that time, the company “instituted many operational and financial changes designed to make the organization more efficient and reduce operating costs.”
Despite some financial upsets, a new retail center and donation center did open earlier this year in Henderson.
The last store to open was at 1451 S. Boulder Highway in Henderson in January, and plans for another location were in the works at 4605 Blue Diamond Road in Las Vegas’ southwest side.
Building permits were allotted for the more than $1 million project in January. That location was projected to employ about 40 people full time at the new 17,000-square-foot space.
Contact reporter Jeffrey Meehan at jmeehan@pvtimes.com. On Twitter: @pvtimes