The American Red Cross of Greater Los Angeles, struggling financially despite an outpouring of donations targeted for tsunami relief, is planning to sell its Wilshire Boulevard headquarters.
Red Cross officials maintain that the move the second major asset sale in a year is being driven by a desire to operate more effectively and efficiently. But they acknowledge that the sale will help shore up the chapter’s finances.
“We know it will reduce our expenses somewhat. We can free up dollars that are not in overhead,” said chapter Chief Executive Roger Dickson, who said some of the money will go to bolster its reserves.
The building’s employees would be sent to other offices. Just over a year ago, the chapter eliminated 29 positions to cut costs.
The Greater Los Angeles chapter is by far the largest Red Cross chapter in Los Angeles County, serving 6 million people in 36 cities through its headquarters and seven regional district offices.
Last week, the chapter reported an increase in revenue, to $19.3 million for the year ended June 30, 2004, from $14.6 million in the previous year.
But the revenues include $7 million in proceeds from the sale of a building on South Vermont Avenue that the chapter was leasing out. Without those proceeds, its revenue would have dropped 13 percent, to $12.3 million. At the same time, expenses rose 10 percent, to $19.7 million.
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The full version of this story
is available in the Feb. 21 edition of the Los Angeles Business Journal.
