St. Christopher’s Inc., a Dobbs Ferry children’s services charity founded in 1881, has filed for bankruptcy protection as it fights 30 child abuse lawsuits.
“It is our intention to not close or eliminate our existing programs,” CEO Sarah Ruback stated in an affidavit. “Rather, we seek to restructure and right-size our current operations to put us on more stable financial footing while resolving our CVA [Child Victims Act] litigation and debts.”
St. Christopher’s declared $10 million to $50 million in assets and $1 million to $10 million in liabilities, in a Chapter 11 petition filed on April 29 in U.S. Bankruptcy Court, White Plains. The McQuade Foundation, an affiliate, declared $1 million to $10 million in assets and liabilities in a separate petition.
St. Christopher’s was founded as a traditional orphanage in New York City and moved to “more bucolic” Dobbs Ferry around 1895.
Since then it has merged with or acquired similar charities, expanded and evolved its services, and sold assets and scaled back as it adapted to changing circumstances.
Now it operates three programs: The Jennie Clarkson Residential Treatment Center in Valhalla that provides therapy and special education for hard-to-place youths; Welcoming Arms for Unaccompanied Minors, a New Windsor shelter for children who migrated to the U.S. without adults; and Health Homes Cares Management Agency, based in Dobbs Ferry, that coordinates health services for families.
The organizations serve 80 children and 170 families. St. Christopher’s has 148 full-time and 43 part-time employees. McQuade has no employees.
Ruback said St. Christopher’s has been operating with monthly deficits for a few years and its cash reserves are almost exhausted.
She attributed financial stresses to low governmental reimbursement rates, shifting regulations, rising labor and insurance costs and the 30 pending child abuse lawsuits that are collectively seeking millions of dollars for damages that the organizations dispute.
The charities are trying to sell the 15-acre Dobbs Ferry campus, and they are negotiating a loan for up to $4 million to support reorganization.
Ruback sees three options for when the charities emerge from bankruptcy. They could reorganize as a standalone organization. They could make an alliance with a like-minded organization. Or they could wind down their affairs.
“The greatly desired outcome at this point is to reorganize as a standalone organization,” she said. It is of utmost importance to continue serving the children “with the most limited interruption possible so that the debtors’ mission can continue to be fulfilled.”
