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October 18, 2010

Crystal Cathedral Files for Bankruptcy

Crystal Cathedral Ministries, which owes about $7.5 million to unsecured creditors, filed for Chapter 11 bankruptcy this morning, according to the Orange County Register.

Earlier this year, the megachurch founded by television evangelist Robert H. Schuller slashed several programs and laid off 50 employees to cut $4.9 million from its $20 million annual operating budget. The Register reports that Senior Pastor Sheila Schuller Coleman said the bankruptcy filing was a necessity because of lawsuits.

A committee of creditors who were working with the church for the last six months declared an impasse, foreshadowing the bankruptcy. Church board member and Schuller's son-in-law, Jim Penner, said Friday that the cathedral's intention is to repay all vendors 100 percent.

Among the long-time vendors for the "Glory of Christmas" pageant still waiting to get paid are Oliver, who supplied camels, horses and sheep for the pageant; wardrobe manager Juliet Noriega; dry cleaner Bruce Johnson, who cleaned the actors' costumes; props manager Sharon Crabtree, and Carin Galletta, whose public relations firm provided publicity for the pageant.

At least two creditors, including equipment financing company PNCEF LLC., have sought and obtained court-ordered writs of attachment.

Earlier, CT covered the church's apology for its debts, Sheila Schuller Coleman's new leadership, and interviewed Robert A. Schuller about his departure from the church his father founded.

Comments

I think it's time for the hundreds/thousands of pastors and lay leaders who have benefited from Schuller's ministry, particularly the church growth conferences, to send love gifts to help this ministry survive.

....or maybe they need to take responsibility for being over extended for too long for appearance sake... and I'm sorry for the new leader who has just inherited her father's issues..

Now is an opportunity for CC to offer a new dream...to cast a new vision...and ignite our imaginations about what God can do when we believe and move forward in faith. Everything we see there today was the result of a dream, vision and faith. It can be done again.

It's time for the Crystal cathedral to accept that the 'temple' theology of herding the people into a nice building was a 20th century phenomenon and it's now a new century. It's time for the people to realize they are the church and the mission is outside the building. Take the millions spent on productions and serve the poor.... the gospel is about loving people and proclaiming the good news to them. Let Disney do the big 'productions' and let the church love people for the glory of God.

We are one of those vendors the Crystal Cathedral owes for advertising of the 2009 Glory of Christmas. We will not file a claim, but instead we will write it off as a cost of doing business. It's a fairly large amount for a company of our size, but the Crystal Cathedral has been a wonderful client of ours for more than 15 years and we have benefited from this long relationship. With gratefulness, we can forgive the final balance and wish them God's blessing.

My opinion may be a minority one here, but as I see it things took a decided turn for the worse when they replaced Robert A. Schuller with the present leadership.

Perhaps a good first step in the right direction would be for the CC to repent of having done this.

This is just speculation on my part, but I think when the church relieved Schullers' son and was not able to replace him with a good preaching male pastor...it was the beginning of the end for the CC. They may recover but not under the current leadership of Sheila Schuller Coleman. I believe the founder (Robert H.) needs to step aside and am convinced that as long as he is there and in control, no solid pastor will want to get into that situation.

One church may be history, but the Church established by Jesus Christ will continue.

I just read the first seven comments and I must agree with every one. It would seem repentance would be a more effective response than an apology.

So sad to see this happen. CC looks back at a great ministry for many years. Many received salvation in the members' classes. There were conferences for pastors and cthisounselors, church growth mentoring, training for crusades, and awe-inspiring events. God bless those who are helping with transitions; we are in a new era now. Blessings to CC. - Richard

I never lived in L.A. only visited occasionally but then remained involved with support for a number of years.
I attribute a large part of the problem to the great changes in demographics that have taken place in Orange County and especially Garden Grove.
Asking Roberta A to step aside made sense to me as a part of Robert H's plan to diversify the preachers seen each Sunday morning.
I pray that the CC ministery will recover.

Jim Mather hit the nail on the head. We are the church, not the buidings.

Perhaps I am in the minority here, but I am not surprised that this happened and only wish that this "ministry" had folded long, long ago. I am more concerned for those that put trust in the leadership, past and present, than those trying to keep such a marketing machine alive. This building, ministry, and programs connected to it were all glimmer and little substance. That people came to Christ via CC is a miracle and I don't doubt it did some good, but Shuller's feel good preaching did more harm than good.

Maybe this is a warning sign for people and ministers trying to follow the CC lead...follow Christ and not man or man's glorification.

I am surprised that none of the prior comments have focused on the real reason for the church's downfall. Personal Greed and Nepotism. Robert Schuler ran the church like his own piggy bank. As I am interested in Mega Church Pastoral integrity, I have been well aware of what Mr Shuler and many other megachurch pastors do with their church's money. But, how many old ladies that send them money every week are aware? It is a shame that this had to happen. However, it is probably for the best as people should really only be giving money to true ministries that exist for the glory of the Lord, not the glory of their founder.

Looks like the result of an edifice complex...so much is focused on the building, the spectacle, the "feel good" preaching, that any connection to the Scriptures is lost. In Houston we have a similar "mega-church" [minus the crystal]. The focus is on feeling good about yourself - if you listen to the "sermon" on TV you hear a lot of pop psychology, and some cute jokes from the big smile and curly hair, but little substance. That probably was CC's problem.

Return to smaller congregations, where you can all know each other. Return to the Bible, and return the church to only Scriptural operations. Spreading the Gospel is the work of the church. Pageants and soup kitchens and entertainment are secular work. Encourage members to do it, but keep it out of the churches work.

Quit making spectacle, self esteem movements, and profits the work of the church. Crystal Cathedral, we can see right through you (pun intended). You have no substance.

All of those who have been attending so that they could feel good outh to be assesed in order to pay off the debts...if that's not possible, sell the property, and pay them off.