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USA Gymnastics has filed for bankruptcy as the aftermath of the sex abuse scandal that has rocked the gymnastics community continues.
The organizationannounced the news in a statementon Wednesday.
“USA Gymnastics today filed a voluntary petition for protection under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Indiana,” the statement said.
In January, Nassar, a former doctor for Michigan State University and USA Gymnastics,was sentenced to more than 175 years in prison. Hepleaded guilty in November to several counts of first-degree criminal sexual conduct.
“We owe it to the survivors to resolve, fully and finally, claims based on the horrific acts of the past and, through this process, seek to expedite resolution and help them move forward,” Kathryn Carson, the chairperson of the board of directors, said in the statement.
“Our sport is safer and stronger thanks to the bravery of these women,” Carson stated. “The Chapter 11 filing and the expedited resolution of these claims are critical first steps in rebuilding the community’s trust.”
An FAQ pagesaidthat USA Gymnastics expects to “continue its day-to-day operations” and that “no set deadline” exists for the bankruptcy proceedings.
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USA Gymnastics has struggled to appease its critics in the wake of the scandal.
In May, theIndianapolis Starreported that USA Gymnasticsallegedly worked with Nassarto make excuses for his absence when he was under investigation.
In September, Kerry Perryresigned as CEOafter nine months. In October, Mary Bono stepped down as interim CEO after Bilescalled her out for an anti-Nike tweetand Bono’s relationship with a law firm linked to the Nassar scandal drew ire, according toThe New York Times.
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source: people.com
