Goodwill of Southern Nevada has filed for reorganization under Chapter 11 bankruptcy, the nonprofit announced Friday.
Over the last five years, Goodwill expanded its donated goods retail business. In fall of 2016, its stores began to experience a decline in sales corresponding with the nationwide retail downturn, Goodwill said in a statement.
"The recent expansion, the retail downturn, and increased operating costs to run our retail stores all have led us to make the difficult decision to file for Chapter 11 reorganization," according to Goodwill.
Goodwill has hired interim CEO John Helderman as of May 2017 and new Chief Financial Officer Beattie Dustin as of March 2017 "to add a fresh perspective and drive necessary change." In addition, Goodwill says it has instituted many operational and financial changes designed to make the organization more efficient and reduce operating costs.
"While these efforts have begun to provide some relief, we believe reorganization is required to address our obligations and implement a long-term business plan that will make our organization viable long-term," Goodwill stated.
Goodwill plans to continue its job training and placement services through its Career Connections Centers and mission programs and continue to operate its thrift stores and attended donation centers in Southern Nevada.