Two years after demise, JCCEO files Chapter 7 bankruptcy, cites $824,158.83 in debt

Two years after demise, JCCEO files Chapter 7 bankruptcy, cites $824,158.83 in debt

The Jefferson County Committee for Economic Opportunity died almost two years ago. Its ashes are finally disbursed.

The beleaguered institution created 58 years ago to elevate the lives of low-income residents in Jefferson County filed for Chapter 7 bankruptcy in the Northern District of Alabama, citing $824,158.83 in debt and no assets.

Among creditors listed on the filing that are still owed at least (or close to) $10,000: Alabama Department of Education ($167,321.57), Playwood Inc. ($167,321.57), American Express ($89,000), KQC Investors ($66,624), Alabama Power ($54,291.54), Mississippi Early ($44,123.99), T Mobile ($35,133.82), Insight Public Sector ($21,770), Waste Management ($21,017), ADS Security ($20, 853.21), Spectrum Enterprises ($17,064), Pitney Bowes ($15,902.18), Dominion Security ($14,371.84) Constang Brooks & Smith ($14,017.00), Phillip Douglas ($12,350), Grounds Tech ($11,850), McPherson Oil Products ($10,637.06), Black & Pickard ($9,500), Spire ($8,709.42).

The filing lists one pending legal claim, by Sysco Central Alabama Inc., for food services. The amount of the claim was not listed.

“Every day since the closure of JCCEO has been like attending the funeral of a loved one,” shared Gary Richardson, former chair of the agency’s Board of Directors.

The agency’s demise was sealed in late November 2021, just weeks after the board fired Executive Director Sharon Myles and terminated five independent contracts based on financial discrepancies. Soon thereafter, it revealed a previously undisclosed $2 million deficit. Upon that news, the board was pressured to relinquish a Head Start grant representing about 90% of JCCEO’s $37 million annual budget, said Richardson.

Regarding the loss of the Head Start grant, U.S. Rep Terri Sewell said: “The loss of the Head Start program at JCCEO has already had devastating consequences for the countless employees who have lost their jobs and the Jefferson County children and families who rely on these services for their childcare and early education needs.”

Read more JCCEO coverage:

· JCCEO’s self-inflicted demise a warning to other boards, agencies that foolishness is over. .

· As JCCEO breathes last breath, time to harvest the heart and start the autopsy.

· JCCEO ‘done’ after being forced to give up federal grants, board chair says.

· JCCEO short millions of dollars after ‘excessive spending.’

Later that month, Alabama Department of Economic and Community Affairs Director Kenneth Boswell told the board it must relinquish its remaining Community Service Block Grant funds by 5 p.m.

ADECA said: “[ADECA] is responsible for managing the Low-Income Home Energy Assistance Program, the Weatherization Assistance Program and the Community Services Block Grant program in the state of Alabama. The local administration of the programs is handled by community action agencies, including the [JCCEO]. Our first priority is always to serve the needs of the clients in these programs.”

At the time, Richardson said the board was pressured to relinquish the CSBG grant funds or ADECA would “take it anyway.”

“It’s like, ‘[Die by] suicide, or I’m gonna kill you.’”

After losing the Head Start grant, the agency laid off 258 employees on the day before Thanksgiving 2021.

“Two years ago, the organization started out with $57 million and 500 employees,” Ricardson lamented following the layoffs. “Now we have zero and zero. It’s over.”