GARDEN GROVE, Calif. — The Crystal Cathedral, the gleaming Southern California megachurch known for its “Hour of Power” television broadcast, has filed for Chapter 11 bankruptcy protection from creditors.
Senior Pastor Sheila Schuller Coleman said Oct. 18 in a statement that the decision came after some creditors chose to file lawsuits against the ministry. Church officials cited the economy as the main cause for its financial trouble. Revenue dropped 27 percent, to about $22 million, in 2009. In the last year, its staff was reduced by 140 and now totals about 200 people.
The church owes creditors $7.5 million, said spokesman John Charles, including the vendor who provided camels, sheep and horses for its annual “Glory of Christmas” pageant. Also unpaid are expenses for television equipment and bills for airtime on some TV stations. The ministry cut costs by reducing its airtime on domestic stations. It now airs on satellite and cable outlets such as Lifetime and the Trinity Network. It also sold its Rancho Capistrano retreat property to Rick Warren’s Saddleback Church in May for $22.5 million. But it remains about $44 million in debt.
Despite the current financial picture, statements from church officials reflected the same positive-thinking mantra the Schullers have been preaching for half a century.
“We know we’ll recover,” Charles said. “We’re very optimistic. This will allow us to get a new beginning.”
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