Under crushing financial pressure from mounting lawsuits and state-level investigations, Camp Mystic—the century-old, all-girls Christian sleepaway camp in the Texas Hill Country—officially filed for Chapter 11 bankruptcy reorganization on Wednesday, June 24, 2026.
The federal filing made in Houston comes nearly one year after a historic flash flood devastated the low-lying facility along the Guadalupe River on July 4, 2025. The catastrophic natural disaster claimed the lives of 28 individuals connected to the camp—including 25 young girls, two teenage camp counselors, and the camp’s long-term owner and executive director, Richard “Dick” Eastland.
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The Financial Collapse
The paperwork filed with the U.S. Bankruptcy Court for the Southern District of Texas highlights a severe financial imbalance resulting from the tragedy’s fallout.
- Massive Liabilities: The Eastland family listed the camp’s total estimated debts as exceeding $10 million, heavily driven by extensive wrongful death litigation and the complete halting of operations.
- Depleted Capital: Conversely, the camp listed its total remaining liquid assets within a narrow range of just $100,001 to $500,000, rendering the business completely insolvent without federal protection.
- The Legal Freeze: Filing for Chapter 11 triggers an automatic stay under federal bankruptcy law. This legal mechanism temporarily freezes all active civil lawsuits against the camp, a maneuver that victims’ attorneys vow will delay, but not stop, corporate accountability.
The Blistering Legislative Report
The bankruptcy filing follows the release of a damning 115-page joint investigative report published by committees within the Texas Legislature. The findings laid bare severe structural deficiencies in the camp’s emergency protocol during the July 2025 flood:
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“No adult staff received advance assignments of responsibilities to assist with evacuating the children in the Guadalupe River cabins, and their resulting detachment and non-involvement meant they were unaware of the crisis experienced by the campers as it was occurring.”
The report concluded that despite at least 39 adults being present on-site who could have aided in a rapid evacuation, camp leadership failed to pass down warnings or execute clear instructions, leaving children trapped inside their low-lying riverfront cabins until it was entirely too late.
The Reopening Backlash
Up until this spring, the Eastland family had been actively attempting a major public relations push to reopen Camp Mystic for its 100th anniversary summer season, citing extensive safety upgrades such as automated river monitors and two-way national weather radios in every cabin.
However, the camp was forced to abruptly withdraw its operating license application in April 2026 following massive community pushback and an intervention by Texas Lieutenant Governor Dan Patrick. State regulators subsequently identified nearly two dozen acute deficiencies in the camp’s newly proposed emergency evacuation plans, effectively ending any viable path to welcoming back its traditional roster of nearly 900 campers.
With the camp remaining shuttered and its assets tied up in a complex multi-year bankruptcy restructuring, legal experts note it is highly unlikely the historic Texas institution will ever reopen its doors.
Trendsetter Tribune
