Southern Nevada Goodwill plans to exit bankruptcy in spring

Updated December 28, 2017 - 5:40 pm

The interim CEO for the local Goodwill branch envisions more stores and donation centers after the nonprofit exits bankruptcy.

With a planned exit date in spring, Goodwill Industries of Southern Nevada, a nonprofit best-known for selling donated goods to fund employment services, has confidence in what interim CEO John Helderman deems a faster, less expensive and more data-driven process for moving inventory to store floors.

“Landlords would be happy to have us; but we’re going to be deliberate,” Helderman said Thursday. “We didn’t have too many stores. Just too many bad leases.”

The official deadline for a reorganization plan from the nonprofit is March, according to court documents.

The nonprofit filed for bankruptcy in August after an aggressive expansion ballooned its presence from eight buildings to about 20.

Since filing, it has shut down four stores, now running 15, according to its website. It also went from 26 standalone donation centers to nine. “Las

Renegotiating rents

Combining donation centers and retail stores will help the local Goodwill keep expenses down, Helderman said. Another new move is giving individual store managers better control instead of assigning similar hours and inventory amounts to all stores.

Since filing, Goodwill has negotiated new rents at three stores, including its North Las Vegas headquarters, according to court documents.

Earlier this month, Goodwill asked the U.S. Bankruptcy Court of Nevada to approve the third revised lease, one for its thrift store and donation center at 1461 S. Boulder Highway in Henderson.

As part of the new lease, Goodwill goes from paying at least $28,000 a month in rent to at least $16,000 plus 12 percent of gross sales at the building.

Landlord Joseph Derhake of Derhake Capital has signed off on the new lease, according to court documents.

The nonprofit is also working toward an amended lease for its store and donation center at 7420 S. Rainbow Blvd., near the intersection of Warm Springs Road. Goodwill had originally planned to vacate the store.

In November, Goodwill negotiated monthly rent for its North Las Vegas headquarters, near the intersection of Martin Luther King Boulevard and Cheyenne Avenue, from at least $90,000 to $71,800.

Adam Stein-Sapir, a managing partner with New York-based claim buyers Pioneer Funding Group, said the bankruptcy is proceeding as one would expect.

“Get rid of unprofitable stores and try to reorganize around the good ones,” Stein-Sapir said. “Prior management expanded too fast and more than was reasonable.”

Cut over 100 workers

Since filing for bankruptcy protection, the local Goodwill has made about $9.36 million in sales and spent about $10 million, according to court documents.

Goodwill’s spending has gone mostly toward payroll. Salaries and taxes added up to about $5.15 million since bankruptcy and about $1.28 million for November, the latest month available.

When Goodwill filed for bankruptcy Aug. 11, it had about 800 employees, making it one of the largest employers in Southern Nevada.

The employee count reached 715 by the end of the month. On Thursday, the nonprofit reported about 650 employees.

Transportation has cost Goodwill $2.38 million since bankruptcy and $48,000 for November.

Rents and leases have cost $1.5 million since bankruptcy and $671,000 for November.

Goodwill netted $384,000 in cash for November, bringing its cash balance at the end of the month to $1.4 million.

“November treated us good,” Helderman said.

Stayed on mission

Helderman, previously a board member, gave up starting a new casino equipment business to become Goodwill’s interim leader and help guide the nonprofit through bankruptcy.

He replaced longtime CEO Steve Chartrand, who is now COO of Opportunity Village, a nonprofit that provides services to people with intellectual disabilities.

Other local Goodwill employees to leave for Opportunity Village include Eric Butwinik, former Goodwill head of retail operations division, and Julian Serrano, former Goodwill risk management and information technology director.

In November, Goodwill hired a new COO, John Stoddard, who previously worked at the Goodwill branch for Central and Northern Arizona. Stoddard may succeed Helderman once Goodwill exits bankruptcy.

Helderman said he’s glad the nonprofit has continued its goal of employment services.

In 2017, Goodwill Industries of Southern Nevada placed about 2,600 people in jobs and provided other services to about 16,000.

“We really appreciate the customers and donors for believing in us,” Helderman said.

Contact Wade Tyler Millward at or 702-383-4602. Follow @wademillward on Twitter.

Downtown Summerlin hosts its annual Festival of Arts
People crowd to Downtown Summerlin for the 23rd annual Summerlin Festival of Arts in Las Vegas, Sunday, Oct. 14, 2018. (Caroline Brehman/Las Vegas Review-Journal)
Clark County educators debate alternative grading systems
Spring Valley High School principal Tam Larnerd, Spring Valley High School IB coordinator Tony Gebbia and retired high school teacher Joyce O'Day discuss alternative grading systems. (Marcus Villagran/Las Vegas Review-Journal) @marcusvillagran
Grandparents on the fire that killed three family members
Charles and Doris Smith talk about the night an apartment fire took the lives of three of their family members. (Marcus Villagran/Las Vegas Review-Journal) @marcusvillagran
New York artist Bobby Jacobs donated a sculpture to the Las Vegas Healing Garden
Bobby Jacobs, an artist from upstate New York, has spent much of the past year creating a sculpture of two separate angel wings. He donated the sculpture to the Las Vegas Healing Garden. (Bizuayehu Tesfaye/Las Vegas Review-Journal) @bizutesfaye
Weather will cool slightly through the end of the week
The weather will cool slightly through the end of the week., but highs are still expected to be slightly above normal for this year. (Bizuayehu Tesfaye/Las Vegas Review-Journal) @bizutesfaye
Mayor announces new public-private partnership
Mayor Carolyn Goodman announced the creation of the Mayor’s Fund for Las Vegas LIFE, a public-private partnership that will allocate money to the city’s neediest.
Fremont9 opens downtown
Fremont9 apartment complex has opened in downtown Las Vegas. (Marcus Villagran/Las Vegas Review-Journal) @marcusvillagran
Fall fairytale gets cozy at Bellagio Conservatory
Bellagio Conservatory introduces its fall-themed garden titled "Falling Asleep." (Marcus Villagran/Las Vegas Review-Journal) @marcusvillagran
What the house that Ted Binion died in looks like today
Casino heir Ted Binion died in this Las Vegas home in 1998. Current home owner Jane Popple spent over $600,000 to restore and modernize the home. (Marcus Villagran/Las Vegas Review-Journal) @marcusvillagran
Rescue Mission employees terminated
Don James, a former employee for the Las Vegas Rescue Mission, talks about the day his team was terminated. (Erik Verduzco/Las Vegas Review-Journal)
Raiders Cupcakes at Freed's Bakery
Freed's Bakery will have Raiders-themed cupcakes available in store and for order during football season. (Marcus Villagran/Las Vegas Review-Journal) @marcusvillagran
51s fans say goodbye to Cashman Field
Las Vegas 51s fans said goodbye to Cashman Field in Las Vegas, Monday September, 3, 2018. (Marcus Villagran/Las Vegas Review-Journal) @marcusvillagran
51s owner Don Logan's last weekend at Cashman Field
Don Logan, owner of the Las Vegas 51s, gives a tour of Cashman Field before the team's final weekend using the field. (Marcus Villagran/Las Vegas Review-Journal) @marcusvillagran
Metro Asst. Sheriff Brett Zimmerman on Aug. 8 officer-involved shooting
Metropolitan Police Department Assistant Sheriff Brett Zimmerman met with media Monday to discuss the details of the 14th officer-involved shooting of the year. (Madelyn Reese/ Las Vegas Review-Journal)
Matt Kelly Elementary School hosted its third annual Back-to-School Red Carpet Program
Matt Kelly Elementary School hosted its third annual Back-to-School Red Carpet Program where community and business leaders joined to welcome students back with an inspirational welcome. Bizuayehu Tesfaye/Las Vegas Review-Journal @bizutesfaye
Star Trek fans on show’s enduring popularity
Star Trek fans at the Star Trek Convention 2018 talk about why they think the show has stayed popular across the years Thursday, August 2, 2018. (Marcus Villagran/Las Vegas Review-Journal) @brokejournalist
Bellagio, MGM Resorts International’s luxury hotel turns 20
The more than 3,000-room Bellagio hotel is situated on the site of the former Dunes Hotel. The Dunes was imploded in 1993, and construction of the Bellagio started in 1996. It cost $1.6 billion to build, making it the most expensive hotel in the world at the time. The Bellagio was former Wynn Resorts Ltd. Chairman and CEO Steve Wynn’s second major casino on the Strip after The Mirage. MGM Resorts International acquired the property from Steve Wynn in 2000. (Tara Mack/Las Vegas Review-Journal)
Facial recognition software at G2E – Todd Prince
Shing Tao, CEO of Las Vegas-based Remark Holdings, talks about his facial recognition product. (Todd Prince/Las Vegas Review-Journal)
Former NBA player, Shaquille O'Neal, speaks about his new Las Vegas chicken restaurant
Former NBA player, Shaquille O'Neal, speaks about his new Las Vegas chicken restaurant. Bizuayehu Tesfaye/Las Vegas Review-Journal @bizutesfaye
Bobby Baldwin to leave MGM
MGM Resorts International executive and professional poker player Bobby Baldwin is set to leave MGM.
Caesars has new armed emergency response teams
Caesars Entertainment Corp. has created armed emergency response teams. They are composed of former military and law enforcement officials. "These teams provide valuable additional security capabilities,” Caesars spokeswoman Jennifer Forkish said. Caesars is hiring Security Saturation Team supervisors, managers and officers, according to LinkedIn. The company did not say how many people it plans to hire for the units. (Las Vegas Review-Journal)
Las Vegas, airlines prepare for CES
CES in January is expected to attract more than 180,000 attendees. (Las Vegas Review-Journal)
AGS partners with Vegas Golden Knights
AGS is the nation’s second-largest manufacturer of Class II slot machines used primarily in tribal jurisdictions. It announced a marketing partnership with the Vegas Golden Knights NHL team. (Las Vegas Review-Journal)
Lehman Brothers bet big on Las Vegas
Lehman Brothers collapsed 10 years ago, helping send the country into the Great Recession.
Fremont9 opens downtown
Fremont9 apartment complex has opened in downtown Las Vegas. (Marcus Villagran/Las Vegas Review-Journal) @marcusvillagran
Ross & Snow launches in Las Vegas
Luxury shoe brand Ross & Snow has opened in Las Vegas, featuring "functional luxury" with premium shearling footwear. (Bailey Schulz/Las Vegas Review-Journal)
Remote Identification and Drones
DJI vice president of policy and public affairs discusses using remote identification on drones. (Bailey Schulz/Las Vegas Review-Journal)
Drones and public safety in Nevada
Two representatives in the drone industry discuss UAV's impact on public safety. (Bailey Schulz/Las Vegas Review-Journal)
Frontier Airlines to launch flights from Las Vegas to Mexico
Frontier, a Denver-based ultra-low-cost carrier, will become the first airline in more than a decade to offer international service to Canada and Mexico from Las Vegas when flights to Cancun and Los Cabos begin Dec. 15. (Rick Velotta/Las Vegas Review-Journal)
MGM Resorts International CEO Jim Murren addresses Oct. 1 lawsuits
MGM Resorts International Chairman and CEO Jim Murren addresses criticism his company has received for filing a lawsuit against the survivors of the Oct. 1 shooting. (K.M. Cannon/Las Vegas Review-Journal)
MGM Resorts International opens the doors on MGM Springfield
Massachusetts’ first hotel-casino opens in downtown Springfield. The $960 million MGM Springfield has 252 rooms and 125,000-square-feet of casino. (K.M. Cannon/Las Vegas Review-Journal)
MGM Resorts International prepares to open MGM Springfield
Las Vegas-based MGM Resorts International gave news media and invited guests a preview of the $960 million MGM Springfield casino in Massachusetts. The commonwealth's first resort casino will open Friday, Aug. 24. (K.M. Cannon/Las Vegas Review-Journal)
A Walk Through Circus Circus
It only takes a short walk through Circus Circus to realize it attracts a demographic like no other casino on the Strip: families with young children. (Todd Prince/Las Vegas Review-Journal)
Morphy Auctions, a vintage slot machines seller, wants gaming license
Vice president Don Grimmer talks about Morphy Auctions at the company's warehouse located at 4520 Arville Street in Las Vegas on Thursday, Aug. 16, 2018. (Rick Velotta/Las Vegas Review-Journal)
Nevada's venture capital money doesn't stay in state
Zach Miles, associate vice president for economic development for UNLV, said there’s venture money in Southern Nevada, “but trying to find the right groups to tap into for that money is different.” According to a 2017 report from the Kauffman Foundation, Las Vegas ranked number 34 out of 40 metropolitan areas for growth entrepreneurship, a metric of how much startups grow. With a lack of growing startups in Las Vegas, investment money is being sent outside of state borders. The southwest region of the U.S. received $386 million in funding in the second quarter, with about $25.2 million in Nevada. The San Francisco area alone received about $5.6 billion. (source: CB Insights)
Neon wraps can light up the night for advertising
Vinyl wrap company 5150 Wraps talks about neon wraps, a new technology that the company believes can boost advertising at night. (Marcus Villagran/Las Vegas Review-Journal) @brokejournalist
Nevada on the forefront of drone safety
Dr. Chris Walach, senior director of Nevada Institute for Autonomous Systems, talks to a reporter at NIAS's new Nevada Drone Center for Excellence of Public Safety, located inside the Switch Innevation Center in Las Vegas. K.M. Cannon Las Vegas Review-Journal @KMCannonPhoto
News Headlines
Local Spotlight
Add Event
Home Front Page Footer Listing
You May Like

You May Like