Company behind breast-cancer, AIDS events closes doors

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Posted 7:20PM on Saturday, August 24, 2002

LOS ANGELES, CALIFORNIA - Pallotta TeamWorks, a company that organizes charity events for AIDS- and breast cancer-related causes, has shut its doors and laid off its more than 250 employees, a former spokeswoman said Saturday. The for-profit company still intends to hold three breast cancer walks scheduled for October in Atlanta, Los Angeles and New York, said spokeswoman Janna Sidley, who was among those laid off on Friday. The company has held 10 other such walks so far this year, netting $43 million. Company founder Dan Pallotta told employees the move was intended to save money and ensure the events it both creates and produces could go on as planned. It may seek to rehire some of those laid off, Sidley said. ``We were furloughed. Their intention is to continue the season and bring us back,'' Sidley said. The company has been blasted by critics who allege it has overspent on marketing, administration and logistics, cutting into what it contributes to charity. Pallotta TeamWorks's main two charity events are its AIDSRidesUSA, now discontinued, and the Avon Breast Cancer 3-Day walks. The company defends the falloff in donations, saying some events drew a smaller number of participants. The events cost the same to produce regardless of how many people took part, the company has said. Beneficiaries of one of the AIDS bicycle rides previously accused Pallotta of mismanagement and organized a competing event held earlier this year. Legal skirmishing ensued, and the number of cyclists in this year's Pallotta-run ride dropped by more than half. At least three beneficiaries of the rides have ended their relationships with Pallotta TeamWorks. In May, Avon Products stunned supporters of the three-day walks by announcing it would drop its sponsorship of the 60-mile treks in 2003. Between 1998 and 2001, 21 of the walks raised more than $116 million for breast-cancer causes. Avon has announced its plans for a series of shorter walkathons next year. Avon officials did not return calls for comment Saturday. ``We're hoping Avon does something,'' said Abby Shiffman, a volunteer with the Atlanta walk to be held Oct. 4-6. About 3,800 people have registered to take part. ``We are all ready,'' she said. ``The event is pretty much planned.'' In announcing the layoffs, Pallotta asked if any of the employees would be willing to volunteer to work on the walks, former employee Gregg Gour said. ``Dan told employees to check back on Monday,'' Gour said. Since 1994, Pallotta TeamWorks has raised more than $222 million for AIDS- and breast cancer-related causes.