Last week I received the following tip regarding Take Charge America.
“Once again Take Charge America lays off more employees. After filing suit against the IRS and having to lay off a large number of employees in March 2012. The CEO and COO resigned in October, and now with the CFO acting as CEO they have laid off more employees. The company is not receiving referrals from any creditors other than Wells Fargo, so the business has dropped.
While the company is bringing around 200 new clients into a DMP, they continue to lose 700 clients each month! The executive committee seems to think that the IRS will be returning the 501(3)(c) status early summer of 2013. More of the hugher paid staff was let go on this lay off, but with business dwindling, how much longer will this company last?”
I had contacted Take Charge for a response to that tip but had not heard anything back.
But today in The Arizona Republic was an article that appears to confirm the basic frame work of the tip.
The article there stated Take Charge America did lay off 35 workers last week. It also stated that:
John Fisher, the former president and chief executive officer at Take Charge America, resigned roughly two weeks ago and was replaced by David Richardson, the former chief financial officer. Mary Hall resigned as the firm’s chief operating officer; she was replaced by Mike Sullivan, who has assumed the title of chief education and operations officer.
Fisher’s departure reflected “differences in philosophy” with Take Charge America’s board of directors in resolving the IRS dispute, Sullivan said in an interview.
Sullivan said the latest layoffs also reflect a downturn in business. Fewer consumers are seeking financial help, and Take Charge America has suffered a drop in referrals from banks and credit-card companies pending resolution of the lawsuit. – Source
Take Charge is allegedly now down to 140 staff from 479 at one time.
If the tipster (send in your tips here) comment was accurate and Take Charge America is losing or graduating significantly more clients than they are taking on, that a separate but more alarming development that can’t be quickly fixed.
Hopefully TCA will take drastic measures to substantially cut overhead to allow them to deal with the client hemorrhage while they work at trying to resolve their ongoing issue with the IRS.
Mike Sullivan has been a loyal commenter on this site and helped a lot of readers with good advice. I’d hate to see the TCA operation come crashing down. Good luck guys.
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