Cheer Athletics Plano, Inc. has officially filed for Chapter 11 bankruptcy reorganization, according to court documents submitted on November 2, 2025, in the Eastern District of Texas (Case No. 25-43320). The program cited significant legal expenses as a factor in the decision and confirmed operations will continue during the restructuring.
Cheer Daily has received and confirmed a formal statement from the owners of Cheer Athletics Plano:
“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.”
A Chapter 11 filing allows a business to restructure debt while continuing operations under court supervision. It is separate from Chapter 7, which involves liquidation.
WFAA reports that the filing occurred just one day before jury selection was set to begin in a civil trial involving two sisters from North Texas. The lawsuit, originally filed in 2021, alleges misconduct by a former coach and names Cheer Athletics and the U.S. All Star Federation among the defendants.
The bankruptcy filing triggered an automatic stay, pausing all ongoing litigation, including the Gerlacher sisters’ case. Their attorney, Michelle Simpson Tuegel, said the timing effectively stopped the trial from moving forward.
McCartney, the coach named in the lawsuits, has not been criminally charged. Tuegel stated that the allegations have been reported to law enforcement.
“He hasn’t been convicted at this time,” she said. “It’s not uncommon in cases like this where we don’t see prosecution, but I would hope law enforcement takes another look in light of what’s happening.”
Tuegel, who has represented plaintiffs in other high-profile abuse cases, noted that while bankruptcy is a legal financial tool, it is sometimes used strategically to delay or avoid jury trials. She indicated her team would now pursue their claims through the bankruptcy court process.
“We were scheduled to start jury selection today,” said attorney Michelle Simpson Tuegel, who represents Hannah and Jessica Gerlacher. “The day before we were set to seat a jury for their civil case, Cheer Athletics filed for Chapter 11 bankruptcy — which stopped the trial from moving forward.”
According to the court filing, estimated assets range between $1 million and $10 million, with liabilities reported in the same range.
“Bankruptcy can be a legitimate financial tool, but we’ve seen it used in other sports cases to delay or avoid jury proceedings,” Tuegel told Cheer Daily. “When a filing comes the day before a trial, it raises serious questions about what’s really being avoided.”
Widely recognized within the cheer community, Cheer Athletics Plano is home to some extremely popular teams including Cheetahs, Panthers, Wildcats, and its Pro Cheer Team, Dallas Drive. This is the inaugural season of the Pro Cheer League. The gym has consistently earned bids to The Cheerleading Worlds and The Summit and has played a prominent role in competitive choreography, stunt innovation, and athlete development. The gym has also appeared on national TV, including the Wildcats appearance on America’s Got Talent.
In 2022, Cheer Athletics relocated to a new headquarters in Plano, which has been reported as one of the largest dedicated cheerleading facilities in the United States. The location provides cheer and dance programming to approximately 1,500 athletes each day. Given its influence, any operational shifts at the Plano location are likely to have broader implications across the all-star cheer industry.
Cheer Athletics’ decision comes amid a wider period of financial and legal complexity in the cheer sector. In recent years, the cheerleading industry has faced heightened scrutiny related to pricing, governance, and oversight.
Now that the Chapter 11 petition is formally filed, the court will oversee the reorganization process and evaluate the gym’s financial viability. The process often spans several years and includes court-monitored repayment plans and operational reporting.
Cheer Athletics management confirmed that practices, events, and competition preparations — including the 2025 Dallas Drive season — are expected to proceed as planned.
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