Cheer Athletics–Plano files for bankruptcy after sexual assault lawsuit

Cheer Athletics-Plano files for bankruptcy

One of the most recognized gyms in competitive cheerleading has filed for Chapter 11 bankruptcy. This came just a day before a civil trial involving sexual assault accusations was set to begin.

AUSTIN, Texas - One of the most recognized gyms in competitive cheerleading has filed for Chapter 11 bankruptcy. e

This came just a day before a civil trial involving sexual assault accusations was set to begin.

The backstory:

"We decided to come forward, so no other child would experience what we went through," Plaintiff Hannah Gerlacher said in 2021.

Hannah, with her twin sister Jessica, announced the filing of a civil lawsuit back in 2021. The Gerlachers, who were national level competitive cheerleaders with a large following on social media, alleged a former coach sexually abused them and the gym, Cheer Athletics, and the U.S. All Star Federation, failed to protect them.

"They put themselves out there in this case. They didn't really want to have to do that, but they did that because they really do want to be an example and to make a sport that they love safer," Plaintiff’s Attorney Michelle Simpson Tuegel said.

Hannah and Jessica

They were set to go to trial on Monday, Nov. 3, but the day before, it was halted.

"I think they're trying to avoid accountability, especially with the timing," Simpson Tuegel said.

Cheer Athletics-Plano filed for Chapter 11 bankruptcy.

"They let our clients prepare for trial, think about testifying in front of a jury and all the hard things that survivors and clients go through as they approach that moment of final accountability, and they decided to try to avoid it. I have certainly seen, especially in sexual abuse litigation, defendants use the bankruptcy process to try and shield themselves from liability and I wish that was not the case, but I think it is here too," Tuegel said.

What's next:

The coach at the center of this lawsuit has not been criminally charged, but the twins’ attorney said the allegations have been reported to law enforcement.

"I think there's still the possibility that this person could be prosecuted, and I sure hope so. I think he should be, but that measure of justice is often delayed or doesn't happen is something unfortunately we see all too often in these cases," Tuegel said.

Tuegel said she will continue to pursue accountability through the bankruptcy court and there is a possibility other defendants could be lifted from the stay and they could continue with those.

The twins are currently the directors of a cheer gym in the DFW area.

Cheer Athletics—Plano responds

What they're saying:

In a statement, the owners of Cheer Athletics-Plano said:

"Cheer Athletics Plano has voluntarily filed Chapter 11 protection in federal bankruptcy court. We made the strategic decision to do this for the purpose of reorganization after nearly five years of significant legal expenses. While we remain confident in our legal position, this incredibly difficult decision will allow us to strengthen our foundation and continue serving our athletes now and for many years to come. This filing relates to the Plano location only. There will be no interruption to our operations, services, events, or ownership. Practices, competitions, and all scheduled activities will continue as normal at all locations, and our athletes will see the same familiar faces, coaches, and teammates they know and love. We look forward to the opportunity to comment further at the appropriate time."