The Boy Scouts of America has filed for bankruptcy, a sign of the century-old organization’s financial instability as it faces some 300 lawsuits from men who say they were sexually abused as Scouts.
The organization says it will use the Chapter 11 process to create a trust to provide compensation to victims. Scouting programs will continue throughout.
The Boy Scouts had been exploring the possibility of bankruptcy since at least December 2018, when the group hired a law firm for a possible Chapter 11 filing. Chapter 11 usually involves the debtor making a reorganization plan to keep its business alive and pay its creditors over time.
The filing was made in Delaware and is expected to set a new deadline for victims’ claims to be made.View news article Opens in a new window