The Boy Scouts of America has filed for bankruptcy protection in a federal bankruptcy court in Wilmington, Delaware, AP reported on Tuesday.
"Scouting programs will continue throughout this process and for many years to come", Evan Roberts, a spokesman for the Scouts. stated. ''Local councils are not filing for bankruptcy because they are legally separate and distinct organisations".
While the Boy Scouts say there were only five known abuse victims in 2018, many cases against the organisation date from the 1960s to the 1980s. Last year, however, changes to laws in New York, New Jersey, Arizona and California made it easier for victims of abuse to file claims even if it occurred decades ago.
The Boy Scouts of America was established in 1910 and became one of the biggest youth organisations in the country. At the moment. it includes 2.3 million youth participants and about one million adult volunteers.
According to The Wall Street Journal, the national organisation possesses $1.4 billion in assets, while local councils hold about $3.3 billion in their funds. The Boy Scouts reportedly had to mortgage its properties, including the headquarters in Irving, Texas.