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
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.