MINNESOTA: Archbishop John Nienstedt Resigns Over Molestation Scandal

"In order to give the Archdiocese a new beginning amidst the many challenges we face, I have submitted my resignation as Archbishop of Saint Paul and Minneapolis to our Holy Father, Pope Francis, and I have just received word that he has accepted it. The Catholic Church is not our Church, but Christ’s Church, and we are merely stewards for a time. My leadership has unfortunately drawn attention away from the good works of His Church and those who perform them. Thus, my decision to step down. I leave with a clear conscience knowing that my team and I have put in place solid protocols to ensure the protection of minors and vulnerable adults. I ask for continued prayers for the well-being of this Archdiocese and its future leaders. I also ask for your continued prayers for me." - Archbishop John Nienstedt, in a press release issued this morning.

From the Minneapolis Star-Tribune:

The Vatican said Pope Francis accepted the resignations of Archbishop John Nienstedt and Auxiliary Bishop Lee Anthony Piche. They resigned under the code of canon law that allows bishops to resign before they retire because of illness or some other "grave" reason that makes them unfit for office. Earlier this month, prosecutors charged the Archdiocese of St. Paul and Minneapolis as a corporation of having "turned a blind eye" to repeated reports of inappropriate behavior by a priest who was later convicted of molesting two boys. No individual was named in the indictment. The resignations came just days after Pope Francis approved the creation of a new tribunal inside the Vatican to hear cases of bishops who failed to protect children from sexually abusive priests. Francis' decision followed years of criticism that the Vatican had never held bishops accountable for having ignored warnings about abusive priests and simply moved them from parish to parish rather than report them to police or remove them from ministry.

PREVIOUSLY ON JMG: The Archdiocese declared bankruptcy in January 2015. Last summer Minneapolis Archbishop John Nienstedt was accused of "sexual impropriety" with priests and other men. Nienstedt then denied allegations that he is gay to a local newspaper. Niedstedt was later grilled by a different local paper about his sexuality. In January 2012, Nienstedt ordered all of Minnesota's priests to remain silent if they opposed the coming referendum on same-sex marriage. Later in 2012, it was Nienstedt's ugly anti-gay public letter that launched NFL player Chris Kluwe into the spotlight after Kluwe penned a blistering response in a local newspaper. In September of that year Nienstedt declared that Satan loves sodomy. Also in September 2012, Nienstedt was accused of shielding a pedophile priest who is currently in prison. In 2010 Nienstedt ordered that communion be denied to openly gay students. Also in 2010, Nienstedt's archdiocese sent out 400,000 DVDs to Minnesota voters urging that they support anti-gay gubernatorial candidate Tom Emmer.

WISCONSIN: Court Rules Against Catholic Archdiocese In Bankruptcy Case

In 2013 it was revealed that while the Archbishop of Milwaukee, now-Cardinal Timothy Dolan sought the Vatican's permission to move that money into a cemetery fund in order to shield assets from the victims of sexual abuse. The Archdiocese declared bankruptcy in 2011.

UPDATE: Here's the AP's report.

The 7th U.S. Circuit Court of Appeals in Chicago said Monday that the fund created by New York Cardinal Timothy Dolan when he was archbishop of Milwaukee is not covered by a federal law that protects religious organizations from government interference. Attorneys for clergy sexual abuse victims say Dolan created the fund to hide money from their clients. The archdiocese filed for bankruptcy in 2011. Hundreds of victims have since filed claims against the archdiocese. The appeals court's ruling reverses a judge's decision that had found that the cemetery fund couldn't be touched. The appeals court sent the case back to the lower court for further proceedings.

Radio Shack Calls It Quits

Radio Shack is filing for bankruptcy but the brand won't disappear entirely. Via Bloomberg:

In the agreement, the Radio Shack brand would continue as a store-within-a-store concept at locations acquired by Sprint, said the person, who asked not to be identified because the talks are private. The retailer now expects to sell 1,500 to 2,400 stores to Sprint and Standard General LP, its biggest shareholder, according to the person. The rest of the locations would be closed, the person said. Merianne Roth, a spokeswoman for Fort Worth, Texas-based Radio Shack, didn’t immediately respond to a request for comment. The Radio Shack talks had been expected to lead to a filing as soon as Wednesday night, though the complexity of the negotiations have delayed the move, another person familiar with the discussions said.

Radio Shack currently operates 5500 locations.

MINNEAPOLIS: Archdiocese Declares Bankruptcy, Freezing Molestation Suits

Via the Minneapolis-St. Paul Star-Tribune:

The Archdiocese of St. Paul and Minneapolis filed for Chapter 11 bankruptcy Friday, becoming the 12th in the nation to say its treasury cannot withstand the unprecedented wave of lawsuits from clergy abuse victims. The move freezes lawsuits against the church, protecting the archdiocese from creditors while allowing it to develop a reorganization plan. It also halts three abuse trials scheduled to begin Jan. 26. The archdiocese is facing more than 20 lawsuits, with another 100 pending. The bankruptcy filing didn’t provide precise financial figures, but showed estimated liabilities of $50 million to $100 million, estimated assets of $10 million to $50 million, and estimated creditors of 200 to 999. “Reorganization will allow the finite resources of the archdiocese to be distributed equitably among all victims/survivors,” said Archbishop John Nienstedt. “It will also permit the archdiocese to provide essential services required to continue its mission.” The bankruptcy filing will allow the archdiocese to continue its daily operations while giving it time to reorganize its finances as a judge determines how much victims may be entitled to receive.

PREVIOUSLY ON JMG: Last summer Minneapolis Archbishop John Nienstedt was accused of "sexual impropriety" with priests and other men. Nienstedt then denied allegations that he is gay to a local newspaper. Niedstedt was later grilled by a different local paper about his sexuality. In January 2012, Nienstedt ordered all of Minnesota's priests to remain silent if they opposed the coming referendum on same-sex marriage. Later in 2012, it was Nienstedt's ugly anti-gay public letter that launched NFL player Chris Kluwe into the spotlight after Kluwe penned a blistering response in a local newspaper. In September of that year Nienstedt declared that Satan loves sodomy. Also in September 2012, Nienstedt was accused of shielding a pedophile priest who is currently in prison. In 2010 Nienstedt ordered that communion be denied to openly gay students. Also in 2010, Nienstedt's archdiocese sent out 400,000 DVDs to Minnesota voters urging that they support anti-gay gubernatorial candidate Tom Emmer.

Trump: I Never Went Bankrupt

From The Bankruptcy King

Another Trump Bankruptcy

Trump Entertainment files for bankruptcy again: http://t.co/3Urfu5F6LK pic.twitter.com/UL0vZN7pKt

— Reuters Business (@ReutersBiz) September 9, 2014

FLORIDA: Orlando's Parliament House Nightclub/Hotel Declares Bankruptcy

Orlando's legendary/infamous Parliament House, where I made my first tentative steps into a gay bar on April 18th, 1976*, has declared bankruptcy. Via the Orlando Sentinel:

Parliament House, a gay resort and entertainment complex, filed for Chapter 11 bankruptcy on Friday citing $15.5 million in debt. The 4.5-acre complex defaulted on loans during the recession in 2009 and has been locked into a foreclosure and refinancing battle since then, said bankruptcy attorney Scott Shuker. “It’s clearly the intent of Parliament House to continue operating and restructure its debts, but we just couldn’t reach agreement with two secured lenders,” Shuker said. The resort is approaching its 40th anniversary. Businessman Donald Granatstein and Susan Unger, both of Toronto, have owned Parliament House for 15 years. Shuker said the business suffered cashflow problems in 2009. Both lenders that held mortgages also went under during the recession. The complex is about 1.5 miles west of downtown Orlando along Orange Blossom Trail.

As any Orlando resident will tell you, the Parliament House has swung between wildly popular and closing-at-any-minute many, many times over the decades. I'm guessing that its current woes are probably related to the failed gay timeshare complex that the owners planned for the adjacent property. (Via Towleroad)

*The drinking age at that time was 18 so it was not terribly uncommon to find high schoolers (like me) in nightclubs.

RELATED: The Parliament House's iconic neon sign is considered an Orlando landmark and the one pictured above is actually a 2004 almost-replica of the 1960 original, which was destroyed by Hurricane Charley. As you can see from the late 70s postcard below, the original sign read "MOTOR INN" not "RESORT."

MONTANA: Catholic Diocese Files For Bankruptcy Over Sex Abuse Suits

Montana's Roman Catholic Diocese of Helena yesterday filed for bankruptcy protection as it settles molestation lawsuits filed on behalf of hundreds of children.

“The settlement here will be as much help financially as we can offer to claimants,” the spokesman, Dan Bartleson, told NBCNews.com. “And the bankruptcy puts us in a place at the diocese where we can care for the Catholics who are currently part of the church.” The lawsuits, originally filed in 2011, claimed that clergy members had abused children from the 1940s to 1980s and that the diocese knew or should have known what was happening. “It’s widespread … (and) some of the most horrific abuse we’ve dealt with,” Dan Fasy, an attorney with law firm Kosnoff Fasy, which represents 268 of the 362 claimants, told NBC News. Although the settlements are not official yet, the U.S. Bankruptcy Court in Montana would supervise the disbursement of $15 million if the Chapter 11 protection is approved, with an additional $2.5 million set aside for victims who have not yet come forward, Bartleson said.

Most of the settlements will be paid by insurance companies. (Tipped by JMG reader Dan)

Put On Your Shocked Face

Detroit Ruled Eligible For Bankruptcy, May Not Have To Pay Pension Obligations

This does not bode well for other cities. Via New York Times:

The judge, Steven W. Rhodes, dealt a major blow to the widely held belief that state laws preserve public pensions, and his ruling is likely to resonate in Chicago, Los Angeles, Philadelphia and many other American cities where the rising cost of pensions has been crowding out spending for public schools, police departments and other services. The judge made it clear that public employee pensions were not protected in a federal Chapter 9 bankruptcy, even though the Michigan Constitution expressly protects them. “Pension benefits are a contractual right and are not entitled to any heightened protection in a municipal bankruptcy,” he said. James E. Spiotto, a lawyer with the firm Chapman & Cutler in Chicago who specializes in municipal bankruptcy and was not involved in the case, said: “No bankruptcy court had ruled that before. It will be instructive.”

One union has already filed its intent to appeal the ruling and others are expected to follow.

NYC Opera Faces Bankruptcy

The New York City Opera's now-running production of Anna Nicole may be its last.

After the curtain falls following the last performance of “Anna Nicole” – an audacious chronicle of tabloid diva Anna Nicole Smith that opened the company’s 2013-14 season – the “People’s Opera” will have only a few days to raise millions of dollars. The 70-year-old company, which has faced financial challenges for a decade, will file for bankruptcy next week if it does not reach its fundraising goals. Earlier this month, the company began a Kickstarter campaign aimed at crowdfunding $1 million of the $7 million needed to carry out the rest of the season. The three remaining productions scheduled for 2013-14 are to be canceled if the goal is not met. To continue to 2014-15, an additional $13 million would be needed. “We have until Monday to raise the rest of the money we need to save our season and save the Company,” general director George Steel wrote in an email to supporters last night, with “Urgent Message” in the subject line. As of yesterday, $1.5 million had been raised, spokesman Risa Heller told the Associated Press.

The company left its longtime home at Lincoln Center two years ago and has since performed at venues around the city.

Sen. Rand Paul: Obama Will Bail Out Detroit Over My Dead Body

"There’s some good things that come out of bankruptcy. One is you get to start over. Bankruptcy lets you be forgiven of your debt. And you do so by getting new management, better management, and by getting rid of unwieldy contracts, contracts that give you where public employees are getting paid twice what private employees are and things come back more to normal. That’s the way cities and businesses can recover. "I basically say he [Obama] is bailing them out over my dead body because we don’t have any money in Washington." - Sen. Rand Paul, speaking to Breitbart.

Detroit Declares Bankruptcy

Yesterday the city of Detroit finally declared bankruptcy.

The decision, confirmed by officials after it trickled out in late afternoon news reports, also amounts to the largest municipal bankruptcy filing in American history in terms of debt.  “This is a difficult step, but the only viable option to address a problem that has been six decades in the making,” said Gov. Rick Snyder, who authorized the move after a recommendation from the emergency financial manager he had appointed to resolve Detroit’s dire financial situation. Not everyone agrees how much Detroit owes, but Kevyn D. Orr, the emergency manager, has said the debt is likely to be $18 billion and perhaps as much as $20 billion.

Girls Gone Bankrupt

Some feminists probably find this news very satisfying.

The company behind the “Girls Gone Wild” videos filed for bankruptcy to protect itself from a $10.3 million debt claimed by Steve Wynn’s Wynn Las Vegas LLC and a $5.8 million award won by a woman who says the company used naked images of her without permission. Last year, Wynn and his company won a slander lawsuit against Joe Francis, founder of the “Girls Gone Wild” franchise, which features college-age women in reality TV-style shows focused on drinking, stripping and sex. “The court finds that Francis made a knowing and intentional false and defamatory statement,” a Nevada judge ruled in April in awarding $7.5 million to Wynn and Wynn Las Vegas. Francis lied when he claimed he had proof that Wynn tricked high-end gamblers, the judge ruled.

Francis reportedly owns a personal jet and a $30M waterfront mansion among other personal holdings that may be used to satisfying the judgements against him.

Bankruptcy For Kodak

I was crying so hard I couldn't work my Instamatic. Kodak filed for bankruptcy today.

Kodak has filed for bankruptcy in a bid to survive a liquidity crisis after years of falling sales related to the decline of its namesake film business as digital cameras have taken over the market. Eastman Kodak Co, the photographic film pioneer, which had tried to restructure to become a seller of consumer products like cameras, said it had also obtained a $950m, 18-month credit facility from Citigroup to keep it going.

The filing in Manhattan does not affect the company's overseas subsidiaries, which may survive in some form if the parent company does not.

UNRELATED: Looking at this photo, I'm reminded that the Pocket Instamatic came with a small sheet of stickers for personalizing your camera. Among the choices were an America flag, such as above, a race car, an Apollo rocket, etc. I chose the daisy, which displeased my father greatly. A 1972 sign of things to come, truly.

Hostess Files For Bankruptcy

Hostess Brands has filed Chapter 11 for the second time.

The privately held Irving, Texas, company, which employs roughly 19,000 people and carries more than $860 million in debt, has been facing a cash squeeze amid high labor costs and rising prices for sugar, flour and other ingredients, according to people familiar with the matter. Those costs together have proved higher than the company's roughly $2.5 billion in annual sales, creating losses and cash shortfalls, the people said. Hostess also owes more than $50 million to vendors, which have been demanding payments on shortened time frames because of Hostess's financial condition, one of the people said. Most of those goods and services were provided to Hostess within the past three weeks or so.

American Airlines Files For Bankruptcy

Filene's Basement Bankrupt

Discount clothing retailer Filene's Basement and its parent company Syms have declared bankruptcy and will close all stores nationwide on January 1st.

CEO Mary Syms, whose father Sy Syms founded the company in 1958 based on offering bargain prices for designer clothes, blamed the move on competition from department stores and private label discounters, plus the weak economy. “Filing for bankruptcy and pursuing a liquidation of our stores is not a step we took lightly,” Marcy Syms said in a statement on the company website Both chains plan to hold going-out-of-business sales beginning Black Friday, the day after Thanksgiving that kicks off the holiday shopping season. There are 21 Filene’s stores nationwide.

The giant Filene's in Union Square is probably the only clothing story I visit even semi-regularly.

Bankruptcy Looms For Postal Service

Unless Congress takes some dramatic action, the long-predicted bankruptcy of the Postal Service may become a reality. The USPS may default on a $5.5B loan which is due at the end of this month.

“Our situation is extremely serious,” the postmaster general, Patrick R. Donahoe, said in an interview. “If Congress doesn’t act, we will default.” In recent weeks, Mr. Donahoe has been pushing a series of painful cost-cutting measures to erase the agency’s deficit, which will reach $9.2 billion this fiscal year. They include eliminating Saturday mail delivery, closing up to 3,700 postal locations and laying off 120,000 workers — nearly one-fifth of the agency’s work force — despite a no-layoffs clause in the unions’ contracts.

Teabaggers are exulting over the above news, noting that the USPS spends 80% of its budget on its unionized labor force.

RELATED: My maternal grandfather was a lifer with the USPS and spent 33 years trudging the streets of Newark during the city's much better days. By the time he retired, three decades of heavy mailbags had worn a literal notch in his permanently tilted right shoulder. I also recall that he loathed the title "mailman," preferring to be called a "letter carrier."