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Editor's Note

BSCAI Files for Bankruptcy;
ISSA Holds Record Convention

Two years after changing its management, the Building Service Contractors Association International has filed for bankruptcy under Chapter 11, unable to negotiate acceptable terms or a sub-lease for its former office space in Fairfax, VA.

Under Chapter 11 protection, BSCAI says it will be able to reorganize its contracts and debt, and move forward in the best interest of its 2,000 members and the organization’s future. As a former association member, we appreciate the value of BSCAI, especially when it comes to guidance regarding immigrant employees and other legislative affairs, and hope they are successful in this re-organization effort.

The unanimous decision by the Board of Directors will allow the organization to continue to operate with its current staff management, and to hold its annual convention and trade show and CEO seminar in 2009.

A Chapter 11 filing is usually an attempt to stay in business while a bankruptcy court supervises the “reorganization” of the company’s contractual and debt obligations.

The association expects to emerge from the reorganization in January 2009, two years after it changed its management to SmithBucklin, the world’s largest association management company. BSCAI is one of 225 groups managed by SmithBucklin, which moved its headquarters to Chicago.

Upon that move, BSCAI carried a lease on its former office space, considerable debt and long-term severance packages. After turning a profit and re-launching the organization, SmithBucklin says BSCAI has been in the midst of positive change.

However, one change that has not occurred is the securing of a tenant to sublet the former property or successful negotiations with the landlord, which threatens the financial viability of the association.

“Reorganization is a business tool granted by the U.S. Government made for groups and businesses just like BSCAI,” said Maurice A. Desmarais, CAE, executive VP/CEO.

“The current Board of Directors feels that filing reorganization is the best possible option to preserve and manage the organization’s assets. Reorganization will enable BSCAI to develop and fund programs that provide value to members and a tangible return on a member’s investment.”

In contrasting to BSCAI’s problems, ISSA posted an 18 percent increase in buyer firms — distributors, building service contractors and in-house service providers at its ISSA/Interclean 2008 trade show in Las Vegas September 8-11.

It also saw an 11 percent increase in buyer-attendee personnel over last year’s show, with 16,233 people registered.

This growth occurred during a year when 50 percent of U.S.-based association annual meetings have experienced decreased or flat attendance over 2007, and the remaining 50 percent saw growth only in the single digits, according “Association Meetings” magazine.

“While the exhibition maxed out its square footage, we also were pleased that the growth in the number of buyers eclipsed that of most other association events,” said ISSA Executive Director John Garfinkel. “The majority of groups posting increases in 2008 are in the high-tech and medical fields, so this is a big accomplishment for the cleaning profession, and it reflects the strong drive of our industry to pursue professionalism, networking, and new ideas.”

We congratulate ISSA for its success, but perhaps it’s more about the business savvy of its attendees and the sustainability of the industry than ISSA’s own good judgment, something that bodes well for BSCAI.

As Dennis Shearer, vice president of sales for Georgia-Pacific Professional put it, “It is a testament to the vitality and staying power of our industry that in challenging economic times, the attendance and mood of this year’s ISSA/INTERCLEAN was strong and upbeat.”

Thanks and good luck.

Chris Sanford

 
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