Bankruptcy Filing Shakes Jewish Summer Camp Network
For now, camp officials are telling parents that the summer will proceed as planned. Representatives of several camps said operations are continuing and that campers should expect a normal season.
A major bankruptcy filing has thrown parts of the Jewish summer camp world into uncertainty just weeks before the season is set to begin.
Simad Holdings, controlled by brothers David and Michael Shabsels, has filed for Chapter 11 bankruptcy protection in New Jersey, along with dozens of affiliated entities. The brothers also filed for personal bankruptcy protection. Court filings list liabilities ranging from $500 million to $1 billion.
The filing has drawn attention across the Jewish community because the Shabsels network owns roughly 30 camps, including overnight and day camps serving thousands of children, many of them from Jewish and Orthodox families. The affected properties include Camp Lavi in Pennsylvania, Camp Achim in New York, SHMA Camps, Camp Mesorah in New York and New Jersey, Camp Malka in New York and Blue Star Camps in North Carolina.
For now, camp officials are telling parents that the summer will proceed as planned. Representatives of several camps said operations are continuing and that campers should expect a normal season.
Chapter 11 does not automatically mean a company will shut down. It allows a business to continue operating while it tries to reorganize its finances and negotiate with creditors. In this case, the Shabsels brothers have until Oct. 2 to present a path forward.
The concern in the camp world is what could happen after this summer. If the restructuring fails, creditors may push for camp properties to be sold in order to recover debts. That could affect the future of camps that have served Jewish families for years.
The bankruptcy follows a serious financial crisis tied to a bond offering in Israel. Simad raised about $195 million through Israeli bonds last year, backed by camp properties and other real estate assets. The company later disclosed that approximately $34 million had been transferred to entities controlled by the Shabsels brothers. When the money was not returned, the company defaulted on interest payments to bondholders.
Reports in Israel have also raised allegations that assets may have been pledged more than once. Israeli regulators are now examining possible securities law violations, and a criminal investigation has reportedly been opened into the financial activity surrounding the company.
The Shabsels brothers entered the camp business in 2006 and built one of the largest for-profit camp networks in the United States. Many Jewish camps operate as nonprofits connected to communal or religious institutions, making the scale of this privately owned network unusual.
The filing comes as demand for Jewish summer camp remains high, with camp playing a central role in Jewish education, identity and community life.
For families, the immediate message from directors is calm: camp is opening. But behind the scenes, one of the largest financial crises to hit the Jewish camp industry is now moving through bankruptcy court.