After rallying their supporters and raising the funds to reopen earlier this year, Springwater Fiber Workshop is closing the doors on it’s retails space. The fate of the school is currently being decided. Director Ann Liddle sent out this letter to supporters, students and community members earlier this week:
July 17, 2008
Dear Friends:
I’m writing this with a heavy heart. After all of the support you’ve given – money and time – and all the hard work, Springwater cannot make it. Once again we have no money and are scraping by to remain open long enough to close down. We are essentially insolvent. Springwater will cease operations on July 31, except for completing the scheduled classes.
Our main concern is seeing the continuation of the fiber art school. We are talking to the Art League about transferring the school assets to them so that they can operate the school. Luckily, thanks to the generous donations during our Big Push effort, we were able to eliminate most of our debt so that we don’t have to sell the school equipment to pay off the debt, as we would have had to last year. The donations also allowed us to operate the school for three more sessions and restock the store.
We will be having a close-out sale of all the store merchandise and furnishings on July 25-27. This includes all of the yarn, fleece, accessories, patterns, gridwall, and the wooden cases, other display items, etc. (It does not include any of the school equipment or furnishings or library!) We would like to close debt-free, so please come and support the sale.
If you are wondering “What happened to all that money?” Here is an accounting of our finances since late last year:
As of October 31, 2007, our Profit and Loss statement for the fiscal year to date (starting July 1) showed a negative $11, 696. In addition, we did not have enough cash to pay $10,000 of bills due the next week. Our debt at that time was about $48,935.
During the week of November 4,2007 the board decided we had to close and on November 11, 2007 we began a liquidation sale to enable Springwater to pay its bills while we closed. That sale brought in about $53,000 in November and December, which enabled us to stay open until the classes were over, pay off some debts, and help maintain the facility and a small staff until we were able to reopen.
We started to receive the Big Push donations in December 2007. Here is an accounting of the source and use of funds from December 1, 2007 through June, 30, 2008:
Source of Funds:
Contributions $111,825
School Income 30,021
Associate Dues 6,650
Store Income 35,063
Total $183,559
Use of Funds:
Cost of Goods Purchased $25,475
Salaries/wages and payroll expenses 62,054
Teacher Fees 16,832
Administrative expenses 6,767
Newsletter 11,305
Occupancy Expenses (rent, electric, telephone, trash) 32,451
Repayment of Debt 27,271
Other (web, advertising, licenses, insurance, 9,021
vendor shipping, credit card fees)
Total $182,155
Balance $1,404
For the entire Fiscal Year (July 2007-June 2008), our net income was $8,970. Cash on hand was about $9,697 as of June 30. We still owe about $8,299 in vendor and other debt. Current bills for July (including rent, electric, telephone, salary, etc.) total about $11,316.
As you can see, we have no money. Springwater can’t continue to manage hand-to-mouth. There are probably many things we could have done differently - and would do if we were able to continue. Although Springwater has always operated close to the bone, it’s getting harder and harder to continue that way. We can’t ask for another miracle like the Big Push campaign. We do hope to save the school one way or the other. Please support whatever form that it takes.
Thank you for over 22 years of fiber art learning, sharing, and joy.
Sincerely yours,
Ann S Liddle
President, Board of Directors
PS – I personally sent out the tax/thank-you letters to all Big Push donors. I’ve heard that some may not have gotten a letter. If so, please let me know. I really tried to make sure I sent them out to everyone. (Also – if any other donors did not get a letter, let me know how much and when you donated.)
Springwater will be having a going-out-of-business sale July 25th-27th at the store in north old town (808 North Fairfax Street, Alexandria, Virginia 22314 703.549.3634)
