Camp Mystic Proposes Court-Supervised Sale After Chapter 11 Filing Amid Ongoing Litigation

Camp Mystic, the Christian sleepaway camp in Texas Hill Country where 28 people died during catastrophic July 4, 2025 floods, has proposed a court‑supervised sale of its property and operating assets following a Chapter 11 filing in June.

In a Sept. 25 filing in the U.S. Bankruptcy Court for the Southern District of Texas, the camp's owners said they intend to sell the real estate and operating assets to an independent buyer through a court-approved process. The document, obtained by PEOPLE, says the owners expect the purchaser could be a group backed by Camp Mystic families and alumnae.

Proceeds Held For Creditors, Including Victims' Families

The filing explains that sale proceeds would be placed in segregated escrow accounts administered by independent plan administrators and then distributed to creditors, including the families of those who died. The filing emphasizes that the sale does not obligate a buyer to continue operating the site as a camp.

"The Debtors [the owners of Camp Mystic] filed these cases because a flood that no one at the camp had seen in a century took twenty-seven of the children and young women in their care, and because the amounts the families who lost them seek exceed, many times over, the insurance and the assets available to pay any claim that is allowed," the filing said.

Notably, the filing’s reference to "twenty-seven of the children and young women" describes those in a particular category; official tallies for the Camp Mystic site list 28 total deaths, including campers, counselors and the camp director. Statewide, the July 4 storms and historic rainfall that turned the Guadalupe River into a torrent killed more than 130 people.

Regulatory And Legal Context

If a buyer elects to reopen the property as a camp, they would need to obtain a new license from the Texas Department of State Health Services under camp‑safety rules enacted in 2025. Camp Mystic had planned to reopen the following summer but announced earlier this year that it would remain closed and withdrew its license application.

The proposed sale follows extensive legal action: multiple families have filed lawsuits alleging negligence and safety failures. Last November, relatives of five campers and two counselors filed a suit claiming the camp's owners prioritized finances over safety.

State investigators released a 115‑page report on June 18 that documented significant preparedness and safety shortcomings at the century‑old camp, including the absence of a written emergency plan that complied with state requirements and inadequate severe‑weather preparations.

Financial Details

Camp Mystic submitted its Chapter 11 petition on June 24. Reporting indicates the company overseeing the camp has debts in excess of $10 million and estimated assets between $1 million and $10 million. The Sept. 25 filing characterizes the proposed plan as the most efficient way to maximize recoveries for creditors and urges holders of eligible claims to vote to accept it.

The camp and an attorney representing victims' families did not immediately respond to requests for comment. One camper, 8‑year‑old Cecilia "Cile" Steward, remains missing.

What Happens Next: If the bankruptcy court authorizes the sale, potential buyers will be able to bid under court supervision. Any buyer wishing to operate a camp must meet state licensing requirements and camp‑safety rules enacted in 2025 before reopening.