The Seaport Museum New York is in financial trouble, and last week it laid off at least five workers including the captain of the Pioneer and a marine educator who had been working there for 10 years, sources say, according to an article today by Julie Shapiro at DNAinfo.com.

"Several sources familiar with the museum's situation, who spoke on condition of anonymity, said the institution's financial position is dire. While board members have lent the museum millions of dollars so it can continue to operate, the museum does not have enough money to order basic supplies or maintain its fleet of historic vessels, which is deteriorating, the sources said," the article continued, adding that one of the sources said that "the place is really tapped out" and is "a barely functioning organization."

"To make money, the museum has tried to sell some of its historic vessels, including the Peking, Lettie G. Howard, Helen McAllister and Marion M., sources said. However, the boats are in such bad condition that it is hard to find a buyer, one source said. The source said a potential buyer of the Peking backed out because the boat needed millions of dollars of work before it could ever sail again," the article said.

A museum spokesman declined to answer specific questions but released the following statement:

In a statement, the article said the museum said that "Like many cultural institutions, Seaport Museum New York is dealing with a variety of challenges resulting from the economic downturn. The museum's executives and board of trustees are working diligently to address and meet these challenges in the interest of ensuring the museum's fiscal health and its ability to carry out its cultural and educational missions."

Nelson Chin, a volunteer deckhand for the museum, said it has been impossible to get the tools and materials he needs to maintain the boats, some of which are more than 100 years old, the article said.

Rusting metal, peeling paint and worn rigging are just some of the problems with the ships, Chin and other sources said.

"Several sources familiar with the museum said they believed the problems stem from the leadership at the top of the organization," the article said, adding that "One source said President Mary Ellen Pelzer and Chairman Frank Sciame are not doing enough to improve the museum's position. They have laid off people who used to promote the museum and raise money, which just makes the situation worse, the source said. As an example, the source said the Pioneer, a potential moneymaker that runs chartered voyages for about $2,000, sat idle at Pier 16 most of the summer, because it had no customers. The 1885 schooner made just 14 chartered voyages in 2010, down from 50 in 2007 and more than 100 in 1992, the source said."

When Pelzer, formerly the museum's general counsel, took the helm in 2007, the museum was on the verge of closing, she said in 2008. Pelzer and Sciame launched new exhibits geared toward a younger audience and hired consultants to create a strategic plan. One result was that the institution recently changed its name from the South Street Seaport Museum to Seaport Museum New York.

"But the museum's woes continued, and in 2008 and 2009 board members loaned the institution about $4 million combined so it could continue operating, according to tax documents. Sciame alone contributed more than $1 million," the article said.