Perilous Times
US megachurch Crystal Cathedral files for bankruptcy
Crystal Cathedral, the megachurch birthplace of the US televangelist
show "Hour of Power," has filed for bankruptcy in Southern California
after struggling to pay back a debt that exceeds $43 million (£27m).
Published: 7:00AM BST 19 Oct 2010
Crystal Cathedral files for bankruptcy
The church was founded in the mid-1950s by the Rev. Robert H. Schuller
Sr Photo: AP
In addition to a $36 million (£22m) mortgage, the Orange County-based
church owes $7.5 million (£4.7m) to several hundred vendors for
services ranging from advertising to the use of live animals in Easter
and Christmas services.
The church had been negotiating a repayment plan, but several companies
filed lawsuits seeking quicker payment, which prompted a coalition
formed by creditors to fall apart.
"Tough times never last, every storm comes to an end. Right now, people
need to hear that message more than ever," Sheila Schuller Coleman, the
Cathedral's senior pastor and daughter of the founder, said.
"Everybody is hurting today. We are no exception," she said.
The church, founded in the mid-1950s by the Rev. Robert H. Schuller
Sr., has already ordered major layoffs, cut the number of stations
airing the "Hour of Power" and sold property to stay afloat. In
addition, the 10,000-member church cancelled this year's "Glory of
Easter" pageant, which attracts thousands of visitors.
Vendors owed money by the church formed a committee in April and agreed
to a moratorium to negotiate a repayment plan with the Crystal
Cathedral.
Kristina Oliver, whose Hemet-based company provided live animals for
the church's "Glory of Christmas" manger scene, said she doubts she
will recover in full the $57,000 she is owed.
"The church never made any kind of advancement that they wanted to pay
their debt, that they were willing to try to make it happen and every
time we tried they told us, 'You can't tell us how to run our
business,"' Ms Oliver said.
"I'm upset because I have a 30-year relationship with them and you need
to be up front, put all your cards on the table."
Crystal Cathedral was founded at a drive-in theatre and attracted
congregants with its sermons on the power of positive thinking. The
"Hour of Power" telecast, filmed in the cathedral's main sanctuary, at
one point attracted 1.3 million viewers in 156 countries.