Big Brothers Agency Files for Bankruptcy

Big Brothers-Big Sisters of Ventura County has filed for bankruptcy in federal court in Santa Barbara, but the organization will remain in operation, sources said.

Listing assets of $50,000 and debts of $99,000, Big Brothers-Big Sisters filed under Chapter 7 of the federal Bankruptcy Code. That section of the law calls for the complete liquidation of assets to pay off creditors, unlike the more common Chapter 11 filing, which is a request for protection from creditors during reorganization.

Big Brothers-Big Sisters, located at 1802 Eastman Ave. in Ventura, filed the bankruptcy documents Oct. 15.

“Generally speaking, it was just due to the economic times,” said Lynda Frey, a member of the group’s board of directors, citing declining contributions from charitable agencies.

“I can’t point at any one reason,” she added. “Just like a number of nonprofit agencies, with the recession it made sense to join with another organization.”

Before filing for bankruptcy, Big Brother-Big Sister officials met with leaders of the nonprofit Interface Children Family Services of Ventura County to assure the program’s services will continue to the approximately 100 children in the county with a Big Brother or Big Sister provided by the agency.

Big Brothers-Big Sisters will remain at its present location and retain its name and charter, but it will be managed by Interface.

“We negotiated with the national Big Brothers-Big Sisters organization to arrange for a seamless transition,” said Interface Executive Director Chuck Watson. Interface has agreed to hire most of the staff of Big Brothers-Big Sisters, and will retain the group’s board of directors as an independent board, Watson said.

“From the community’s perspective, the services will continue without interruption,” he said.

Calling the merger a positive move, Frey said the agreement has resolved the group’s financial problems while retaining the program’s benefits. “The kids are what’s important after all,” Frey said.