Camp Mystic Files for Bankruptcy Following Tragic Floods

Camp Mystic’s owner has filed for Chapter 11 bankruptcy protection, nearly a year after floods in Texas Hill Country led to the deaths of 25 girls, two teenage counselors, and the camp’s director. The filing detailed debts ranging from $10 million to $50 million, with assets between $1 million and $10 million. This was submitted to the U.S. Bankruptcy Court in the Southern District of Texas, Houston.

Increased scrutiny has fallen on Camp Mystic due to its handling of the July 4 floods. State investigators released a report earlier this month identifying inadequate emergency planning and response practices as contributing factors to the tragedy. The report emphasizes learning from these shortcomings to prevent similar incidents in the future.

The report highlighted that evacuation efforts during the flood relied heavily on three individuals: the camp co-owner, his son, and a security guard. Tragically, Richard “Dick” Eastland, the camp’s co-owner, was among those who perished.

In late April, Camp Mystic withdrew its application to reopen this summer, following a legislative hearing attended by the parents of girls who died in the flood. In their statement, camp officials acknowledged the loss of lives and expressed respect for the concerns and voices of grieving families, legislators, and citizens, choosing to step back from reopening.

In November, victim families initiated lawsuits against the camp’s operators, alleging negligence in flood response actions. These suits seek over $1 million in damages. Sarah Foss from Debtwire explained that bankruptcy could pause these lawsuits, with families needing to claim compensation from the bankruptcy proceedings instead of pursuing individual verdicts.

“Whether those lawsuits ultimately proceed in the bankruptcy court or the courts where they are pending, victims’ families will be treated as creditors who must seek compensation from a limited pool of money in the bankruptcy case rather than through individual jury verdicts,” Foss said.

The eight-page bankruptcy filing, signed by members of the Eastland family who own Camp Mystic, lacks detailed financial information. Martin A. Sosland, listed as the attorney for the debtors, has not commented.

The floods last July caused at least 136 deaths along the Guadalupe River. Cecilia “Cile” Steward, an 8-year-old camper, continues to be missing.