In a significant move within the nonprofit sector, Inperium Inc. is poised to take over Resources for Human Development (RHD), the Philadelphia-based health and social services provider currently grappling with mounting financial woes. The acquisition comes on the heels of RHD’s CEO, Marco Giordano’s, departure amidst a forecasted $8 million loss for the fiscal year. This troubling deficit marks a sharp decline from the $3 million shortfall reported in the previous year, indicating escalating financial difficulties for the organization.
With over 250 administrative personnel already impacted by layoffs, the acquisition is seen as a critical lifeline for RHD. Inperium’s proposition includes a considerable rescue package, extending a promise of a $10 million payment alongside a substantial $25 million loan, expected to be repaid over two years. The agreement also entails RHD taking charge of four Inperium-affiliated nonprofits, with combined annual revenues of $148 million. This partnership could provide the much-needed stability and operational scale that RHD desperately requires to survive.
Strategic Consolidation and Management Overhaul
Inperium Inc. is set to acquire Resources for Human Development (RHD), a struggling Philadelphia-based social services organization. RHD’s financial situation has deteriorated, as evidenced by a forecasted $8 million deficit, up from a $3 million loss the previous year. The departure of RHD’s CEO, Marco Giordano, further complicates the situation.
The acquisition by Inperium appears to be a saving grace for RHD, preserving its essential services amid layoffs that have affected over 250 staff members. Inperium’s takeover includes a $10 million payment to RHD and a $25 million loan, which RHD will repay within two years. Additionally, RHD will manage four smaller nonprofits associated with Inperium, which collectively generate $148 million in annual revenue. This strategic move by Inperium could provide RHD with the necessary financial support and increase its operational capacity, ensuring its continuity in a time of crisis.
