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

[Mark]

This is what happens when you depend on rich, evangelical Republicans to keep you in business. Hahaha!

[Certified AOD Counselor]

This is AWESOME NEWS! If only it would happen to ALL CHURCHES!

[Brooke]

All Jesus needed to preach was a patch of land to stand on.

Just sayin.

[Laila Leah]

@Marcy : No, Laila. Jesus was against material wealth. There is nothing at all wrong with earning a good living. Key word is EARN. Tithing is not earning - it is charging (exceedingly high) space rent for people's butts on Sunday. Some churches do good with the money they raise. Other build ostentatious and ugly displays of material wealth. I am happy they are bankrupt. The meanest adobe mission church is far more lovely both to look at and sit inside, than this monstrosity ever was or could be.

Obviously, you don't know the what the Holy Bible says. Jesus was not against material wealth. Jesus Christ had a Treasurer named Judas. Broke people don't need treasurers! Also, tithing existed before the Law. Abraham brought tithes to Melchidezek.

Tithing is a Biblical Principle, not something that is new to the Body of Christ.

[A52R]

SO MUCH FOR OLD TIME RELIGION!

[IngaTuMa]

And Who Says, Church isn't a Business?

[Robert]

Let's hope this starts a trend, and these fantastic properties can be put back on the tax rolls.

[MrEguy]

They outta merge with the MORmONS. More prophets and profits, same Jesus -- better fairy tale!

[Malby4]

I see a happening disco in that space . . . .

[Malby4]

"They think that it is okay for people that openly flaunt sinful lifestyles to enjoy an abundance of finances, but they are against the Church having financial prosperity." No, we EARN our money AND pay taxes on it. These folks put on a show and sucker naive but likely hardworking folk into paying them millions to do so, all without a dime in real estate or business tax. (I do beleive that Jesus was opposed to moneychangers in the Temple.)

[Malby4]

@ Doug: the winner!! Genius proposal.

[AB]

You know it's a bad economy when Jesus goes bankrupt. -AB www.andrewbaker77.com

[basicasian76]

there are Catholics in santa ana, there are muslims in Anaheim and Buddhists in westminter. lets see who takes it over?

[Bob]

The possibilities are endless ;-)

(So, that is why he sacked his son...he mistakingly thought his son was responsible for the revenue decline. I suggest that it is more than the recession; that the internet has a lot to do with it, as well. So much is online. It is not so necessary to visit places.)

[Kevin Cartwright]

Among its many musical assets, the Crystal Cathedral houses the 6th largest pipe organ in the world. A major part of this instrument (a combination of two older instruments plus contemporary additions) is the historic Aeolian-Skinner organ from the New York City Philharmonic Hall. Outside, an impressive 52-bell carillon rests in the tower. If this church ceases to operate, it is important that we save these musical assets so the public may continue to enjoy them.

[Jay Reidy]

What do you expect when you worship false gods.

[Bob]

Jesus didn't preach prosperity. He taught kindness and to take care of those less fortunate.

[El Guapo de la ciudad de Los Angeles]

Maybe the Moonies can take the place over.

[Edge]

When the younger Schuller left, that's when I began to question my faith and thus arrived at the conclusion that no organized religion speaks for any diety, except for the one Americans worship, the one that folds in your wallet/purse. "In God We Trust" is appropriate for our currency.

[Johnsy]

Good old God couldn't balance the books, eh?

[dee gee]

....its easier for a camel to pass through the eye of a needle than it is for a rich man to enter the kingdom of heaven.....

[Gary Hench]

I was in this church once, but not the Crystal Cathedral ... The Garden Grove Community Church. Not to hear Schuler either. The guest speaker that Sunday was Bishop Fulton J. Sheen and his homily..."Jesus Christ SuperScar"!
If this church goes under, I dare say there will be a super scar right where it stands in Garden Grove.
Jesus warned about building edifices to Man!

[Stephen]

Ha Church what a gimmick.

[Kate Wellington]

A church filing bankruptcy? They don't even pay taxes. I thought the redemption racket was recession-proof.

[u know]

It takes a lot of donations to keep the Schullers living like royalty. Keep sending in your money suckers! After all that's what God wants you to do, just ask a Schuller.