Boy Scouts exploring ‘all options’ to address fiscal troubles
NEW YORK — The Boy Scouts of America says it is exploring “all options” to address serious financial challenges, but is declining to confirm or deny a report that it may seek bankruptcy protection in the face of declining membership and sex-abuse litigation.
“I want to assure you that our daily mission will continue and that there are no imminent actions or immediate decisions expected,” Chief Scout Executive Mike Surbaugh said in a statement issued Wednesday evening.
Surbaugh was responding to a Wall Street Journal report that the BSA, founded in 1910, had hired a law firm to assist in a possible Chapter 11 bankruptcy filing. He described the report as “news speculation,” but he acknowledged that the group is “working with experts to explore all options available” as well as the pressures arising from multiple lawsuits related to past instances of sexual abuse.
“We have a social and moral responsibility to fairly compensate victims who suffered abuse during their time in Scouting, and we also have an obligation to carry out our mission to serve youth, families and local communities through our programs,” Surbaugh said.
Other institutions facing multifaceted sexual abuse scandals have sought bankruptcy protection recently.
USA Gymnastics took the step last week as it attempts to settle dozens of lawsuits related to abuse by nowimprisoned gymnastics doctor Larry Nassar.
About 20 Roman Catholic dioceses and other religious orders around the U.S. have filed for bankruptcy protection as a result of clergy sexual abuse claims.
Surbaugh apologized on behalf of the BSA to those abused during their time in the Boy Scouts.
The Boy Scouts also has been trying to reverse a decline in membership.