Jewish Charity FEGS Will File For Bankruptcy
Image by Anya Ulinich
By Josh Nathan-Kazis March 17, 2015
The Jewish social services behemoth FEGS Health & Human Services will soon file for bankruptcy, the Forward has learned.
That filling could come as early as March 18, according to someone with knowledge of the decision, who asked not to be named because of the confidential nature of the process. FEGS did not respond to a request for comment on the report.
FEGS announced January 30 that it would shut down after revealing massive losses in its 2014 fiscal year. The Forward reported March 17 that FEGS faced a bevy of financial problems, the result of an apparent effort to grow its way out of fiscal challenges.
The charity carries massive financial obligations, including $90 million in ongoing leases, $15 million in mortgages, and $6 million in loans, according to a 2014 financial report obtained by the Forward.
The New York Jewish Week reported in February that FEGS vendors complained that the charity owed them tens of thousands of dollars.
Meanwhile, more questions continue to hover over the agency: Why did FEGS funnel increasing millions in its final years to its for-profit subsidiary AllSector, as the Forward reported in March? FEGS owns 95% of AllSector; the owner of the other 5% is unknown.
I’m personally matching all gifts to the Forward, up to $36,000. Can I match your gift now?
Hello, fellow Forward reader! I’m Joel Brown, a Forward reader and supporter for more than 15 years, and currently the chair of the board of directors.
I’m an avid Forward reader because it ticks so many of my essential boxes: excellent journalism, Jewish focus and diverse viewpoints. In today’s political climate, what I most appreciate is the Forward’s independence — made possible by the generosity of its membership.
The Forward is committed to bringing you unbiased, nuanced Jewish news. From my position as board chair, I see an exciting future as we expand our position as the definitive independent voice of contemporary American Judaism.
— Joel Brown, Forward board chair
Support our mission to tell the Jewish story fully and fairly.
