The Boy Scouts of America (BSA) have filed for Chapter 11 bankruptcy.
News of the filing comes after an onslaught of sexual abuse allegations have hampered the youth organization for decades. BSA says it is hoping the bankruptcy filing can help it re-organize its finances and properly compensate the victims of abuse.
“The BSA cares deeply about all victims of abuse and sincerely apologizes to anyone who was harmed during their time in Scouting,” Roger Mosby, president and chief executive officer of BSA, Fox News reports. “We are outraged that there have been times when individuals took advantage of our programs to harm innocent children.”
One attorney representing hundreds of victims from New York said the sex abuse cases were so numerous that this bankruptcy would be “bigger in scale” than anything else like it.
“You’re talking about thousands of perpetrators,” attorney Michael Pfau told the New York Daily News. “You’re talking about tens of thousands of victims. This will be the largest bankruptcy the country has ever seen, and likely one of the largest corporate bankruptcies.”
The Boy Scouts of America have filed for bankruptcy as the group faces a growing wave of sexual abuse lawsuit.
— WRTV Indianapolis (@wrtv) February 18, 2020
In 2019, nearly 8,000 Boy Scouts leaders were accused of sexually abusing children dating back decades, with that number only having grown since. pic.twitter.com/h0soIzK790
Along with the bankruptcy filing, BSA is also reportedly planning to set up a Victims Compensation Trust.
“While we know nothing can undo the tragic abuse that victims suffered, we believe the Chapter 11 process – with the proposed Trust structure – will provide equitable compensation to all victims while maintaining the BSA’s important mission,” Mosby said.
For some, this filing was a long time coming. BSA’s assets were listed as between $1 billion and $10 billion in the bankruptcy petition, but the number of sexual assault allegations was piling up at a rate that was untenable for the organization. BSA hopes that the bankruptcy will allow it to continue as an organization into the future.
In an open letter to victims online, BSA National Chair Jim Turley encouraged any and all victims to come forward.
“I want you to know that we believe you, we believe in compensating you, and we have programs in place to pay for counseling for you and your family by a provider of your choice,” he wrote.