YouthBuild parent files for Chapter 11, remains in business
Posted By Jim Hagerty On May 11, 2011 @ 6:59 am In News | Comments Disabled
– Carpenters’ union lawsuit contributes to local nonprofit bankruptcy
By Jim Hagerty
Online Editor
Comprehensive Community Solutions (CCS), the nonprofit parent of Rockford’s YouthBuild chapter, filed for Chapter 11 bankruptcy protection Wednesday morning, May 11, officials said.
According to CCS Executive Director Kerry Knodle, the company has experienced several economic hardships since 2009, when its construction company, CCS Construction, closed.
Since Knodle shut the doors to the construction division, CCS has gone head-to-head with Carpenters’ Union Local 792. Early last year, CCS was ordered to pay the union $48,000 after a labor dispute and $35,0000 to the Illinois Department of Labor.
With the cases seemingly over and judgments made, CCS was again embattled with the union late last month, when Local 792 filed a discovery citation against CCS, freezing all of the agency’s assets. The citation prevented the organization from covering payroll and other expenses, Knodle said.
Knodle also noted two union representatives are former CCS employees. Carpenters’ Union President Ricardo Cervantes is a former manager of CCS Construction, while Treasurer William Buckler was a CCS-contracted carpenter.
The agency, which helps train disadvantaged youth in the construction trades and earn credit toward a GED, will remain in business and is still utilizing federal grant funds.
“As a grantee of federal funds, we have a fiduciary responsibility to protect the funds we receive,” Knodle said. “This will allow us to do that. This is not a going-out-of-business announcement. It was a business decision to also protect our students and staff in order to continue providing our highly in-demand services. It was also brought on by the frivolous actions of the carpenters’ union.”
Carpenters’ union spokesmen could not be reached for comment as of press time.
From the May 11-17, 2011 issue
Article printed from The Rock River Times: http://rockrivertimes.com
URL to article: http://rockrivertimes.com/2011/05/11/youthbuild-parent-files-for-chapter-11-remains-in-business/
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