Crystal Cathedral files for bankruptcy amid mounting debts [Updated]

Faced with mounting debts and decreasing donations, the Crystal Cathedral announced today it was filing for bankruptcy protection.

The move came as the Garden Grove church was struggling to pay its bills. “Budgets could not be cut fast enough to keep up with the unprecedented rapid decline in revenue due to the recession,” Senior Pastor Sheila Schuller Coleman said in a statement released by the church.

The church plans a press conference at 3 p.m., according to church spokesman John Charles.

The famed mega-church has suffered from financial troubles in the last year.

In January, the Crystal Cathedral announced it was laying off 50 workers and selling surplus property because of a precipitous drop in contributions.

The 7,000-member church also has canceled its "Glory of Easter" pageant, a popular reenactment of the life and death of Jesus Christ, which sold tens of thousands of tickets each year.

The church, founded by the Rev. Robert H. Schuller more than 50 years ago, lost members in the wake of a family feud after he retired. His son, the Rev. Robert A. Schuller, succeeded his father, but stepped down in 2008 after disagreements. His sister, is now the church's leader.

As of January, officials said church's revenue sank 27% from roughly $30 million in 2008 to $22 million in 2009.

[Updated at 2 p.m.: In her statement, Sheila Schuller Coleman said services and programs at the church will continue, including various ministries and the "Hour of Power" television program.

"Challenging situations are nothing new to our 55-year Ministry," Coleman said in the statement. "Many people said we’d fail when we started our church in a drive-in theater. But look how successful that was! Many said we'd fail in 1970 when we made the commitment to televise our first worship service in Los Angeles and then New York … but look how far we've come! In 1977, countless persons predicted that our plans to build a 2,800-seat all-glass church in earthquake-prone Southern California would never get off the ground, but we have made history. We've always believed in a big God … a God Who is greater than any problem or challenge we could ever face."

She said the bankruptcy declaration "is just one more chapter in the book that He is continuing to write -- and we know that God's plans are good -- we have no doubt His chapter will be good!"]

--Shelby Grad

Photo: The Crystal Cathedral complex. Credit: Los Angeles Times

Comments

[Arye (Leslie) Michael Bender]

It's a church. No, it's a business. But it's a church, isn't it?

[Pragmatist]

This, I believe, is the flip side of the prosperity Gospel. It is sad that an institution that gave hope and comfort to many is failing. But the hope it gave was based on a materialistic vision that flew in the face of the teachings of Jesus Christ. The loss of a false prophet is a net gain for society.

[Pacific Northwdst]

See we heathens also pray. I was bullied by a supervisor because I did not acknowledge the cathedral in ANY way. Lost the job through lying (on the part of the supervisor)who was a big member in the organization, no floor supervisor to get rid of me. The horses patoot.

[Joe]

Ray Steven's "Would Jesus wear a Rolex?" comes to mind...

[Tvegas]

Charlatans and con men.

[David Theiss]

I hope I can outlive Scientology, too.

[Big Jim Slade]

Now if it was a union church they could get federal money, right?

[Long Beach Visitor]

Ha ha
Another taxpayer bailout in the works.

[Brandon]

Good.

[lwps]

You gotta be a pretty bad manager, when you can't even make it with a 30% or so advantage over tax paying enterprises.

[lothianscot]

Maybe God is trying to send a message to these spiritual hucksters
and he has to do it this way because his English is not too good.

It is possible that the financial problems can be solved by selling the
property out of Bankruptcy Court to the Barnum & Bailey circus folks.

[TheBigPicture]

It's gonna make a cool 7-11...

[Moral issues]

Nice big expensive church and a big plot of land. Pssst....How much is that costing you guys a month?

[George]

Have you seen the house Shuller lives in. No wonder the money is gone.

[hamjor]

Robert H. Schuller (the father) had The Gift, a knack for preaching with tremendous charisma and touching countless people in a very rare, personal way. RHS' son, Robert A. Schuller, did not have the same gift in my opinion and disappointed many.

I'm not going to try and step into a doctrine fight or assess the reported family feud I know nothing about, but to me, this is the kind of thing that happens when a great leader passes the mantle of leadership of an enterprise, like it was an inheritance or royalty, to another family member who may not be the most qualified leader to assume the role.

Another megachurch in Houston, Lakewood Church, which has grown in a similar fashion on the strengths of a pastor with an abundance of charisma, Joel Osteen, will be faced with the same risks when his time comes.

[Stephen Jordan]

One wonders what happens to a church that started selling burial space on their property for up to $750,000 when bankruptcy proceedings get underway. Call the moving vans?

http://www.crystalcathedral.org/resources/memorial_gardens/family_estates.php

[D.]

So this means that a "business" that is tax-exempt is now looking for tax-payer protection? Kinda ironic....

[scott]

all those tax breaks and they still couldn't pay their way?

[michael smith]

Gosh, maybe there really is a God!

[Big Bird]

Churches are like any business. They are in it to make money, in this case by pocketing money from superstitious humans ever hopeful that they will live forever, in a kingdom, far, far, away. Good luck with that.

[Mike]

@D. Just what "tax payer protection" is the church getting in bankruptcy?

@George I HAVE seen the house the Schuller's live in (and have lived in for about 40 years I believe. It's nice, but hardly palatial.

It's a church with a lot of ministries and programs that cost MONEY. Churches don't get things for free. Just like the rest of us, when income is less than expenses and debt, then we're in a fix. The inability to pay all the creditors as fast as they'd like in the absence of cash in the bank led to bankruptcy. Not corruption.

[Moral issues]

This is who you preach and live within your means. The church was completed in 1980, built at a cost of $18 million. Now remember folks, they want minimal 10% of your salary to god.....

[inbox1909]

Would Jesus file for bankruptcy? It's obvious the Crystal Cathedral is a business. "Pride goeth before a fall."

[steel eyes]

great place for in door swap meet

[Derby Sheldon]

Guess they should re-think making things out of crystals .