Summer Camp Empire Approved for $449 Million in Bankruptcy Sales

East Coast summer camp empire Simad Holdings Inc. secured bankruptcy court approval to sell its assets for $448.8 million to a slew of buyers.

The sales represent the best outcomes for creditors and parents, Judge Christine M. Gravelle of the US Bankruptcy Court for the District of New Jersey said at a hearing Monday. Gravelle, also acknowledged dozens of letters the court received from concerned parents about the fate of the camps.

“Usually the larger cases like this are about economics, they’re about financial pressures and creditors and how do we pay everybody and how do we do the best job here,” Gravelle said. “But here, when you talk about the camp legacies, that’s huge.”

The approval includes 22 of 23 summer camps that went through a competitive bankruptcy auction over several days, leading to offers from multiple buyers valued initially at $368.3 million, which later reached $377.1 million. Previous deals to sell four additional camps totaling $71.7 million were also approved Monday.

The largest sale in the portfolio — Mohawk Day Camp in Westchester, N.Y. — sold for $120.8 million to a private investment vehicle tied to FitzWalter Capital. FitzWalter beat a high-profile offer from a business tied to Warner Bros. Discovery CEO David Zaslav, which bid nearly $81 million.

The “staggering” sale results will lead to the preservation of the camps’ legacies for many years to come, Simad attorney Michael Sirota of Cole Schotz PC said at the hearing Monday.

“These cases certainly rise to the level of one of the most challenging, time consuming, and — given the impact on more than 20,000 children — emotionally charged cases,” Sirota said.

The sale for Camp Malka in Greenville, N.Y. was put on hold and three other camps were excluded from the auction to deal with logistical issues.

Gravelle overruled an objection from an auction participant alleging procedural irregularities related to the bidding for Summit Camp in Honesdale, Pa., and an objection from Heritage Camps, which took issue with the winning bid for Eagle’s Landing in North Brunswick, N.J.

Secured creditor Mishmeret Trust Co. supported the sales, noting that the money should be enough to fully repay bondholders’ $214 million in claims, according to its attorney Stephen Tetro of Chapman and Cutler LLP.

The entire 30 sleep-away and day camp portfolio was appraised at the end of 2025 at about $466.6 million, according to court records.

The company was put into bankruptcy in June after defaulting on interest due for a $214 million Israeli bond issuance. Simad also faces more than $230 million in merchant cash advance funding claims.

Simad, in a July 23 securities filing, said its US legal advisers told it that it’s received demands for records related to a grand jury investigation opened by the US Attorney’s Office for the Eastern District of New York. The probe is related to the company’s controlling shareholders and other affiliates.

A civil probe has also been opened by the US Attorney’s Office for the Southern District of New York related to allegations of Covid-19 relief fund fraud, Simad has said. The company said it’s cooperating with the investigations.

Simad is represented by Cole Schotz PC.

The case is In re SIMAD Holdings Ltd. , Bankr. D.N.J., No. 26-16388, hearing 8/10/26 .

To read the full article, click here.