Money woes force Up With People group to shut down

The Up With People musical tour group, founded in 1965, includes 655 participants from around the world

BROOMFIELD, Colorado (AP) -- Facing increased competition from mainstream acts and mounting financial losses, the Up With People musical tour group decided Wednesday to shut down at the end of the year.

Members of the group's board of directors voted unanimously to close after completing this month's tours. Chairman Tom Badciong left open the possibility of reorganizing the group, saying, "In order to resume regular operations in the future, it will require significant restructuring."

The not-for-profit organization, founded in 1965, currently has five traveling casts of 655 young adults from around the world on performance tours in Massachusetts, Denmark, New York, Japan and France.

Each performer pays a program fee of $14,300 to travel with Up With People. Other sources of revenue include ticket and merchandise sales and donations.

The group's 262 employees worldwide will lose their jobs,including 66 at the headquarters north of Denver. The headquarters land and building will be sold to help pay off the group's $7.3 million in debts and leasing commitments and provide operating cash.

Nearly 180 students selected to participate next year will be notified the program has been suspended.

Unaudited results showed the group lost $3.2 million in the fiscal year that ended June 30, up from a loss of $860,000 in the previous fiscal year, when it tapped into its endowment to cover expenses.

The endowment still has $10 million which the board in consultation with lawyers will decide how to spend.

Brenda Moran, president of the Up With People International Alumni Association, said the group has yet to appeal to its 19,000 former members. She also said the group has strong community and corporate support that it could tap.

Copyright 2000 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Up With People

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