FAIRFIELD, Ala. (WIAT) — The city of Fairfield filed for bankruptcy, the city’s Mayor Eddie Penny said Monday.
Fairfield filed for bankruptcy under Chapter 9 of the federal bankruptcy code in the U.S. Bankruptcy Court for the Northern District of Alabama in Birmingham, according to the petition. In addition, the petition states the city has between 200 and 999 creditors with $1 million to $10 million in assets and liabilities.
The city’s expenses exceeded city revenue this year. At this time, the mayor said the city is seeking a fresh start.
There are no layoffs anticipated and plan to keep the same staff in fire and police services.
The city of Fairfield has been financially strapped for more than a few years now. Back in 2016, Mayor Kenneth Coachman spoke with CBS 42 saying, “things are extremely bad.”
It is a city losing residents, from 12,000 back in 2010 to a little more than 11,000 today. Business has also seen better days. Back in 2016, the Walmart Supercenter left Fairfield, leaving a couple hundred people without jobs. In 2015, portions of the city’s U.S. Steel plant went idle, although it still remains one of the largest employers in the city with 800 employees.
This story has been corrected to reflect that U.S. Steel is still in operation in Fairfield.
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