L.A. Zoo nonprofit’s bankruptcy case dismissed, boosting city in fight over $50-million endowment

A federal judge this week dismissed a bankruptcy case filed by the Greater Los Angeles Zoo Assn., handing the city of Los Angeles another victory in its legal battle with its former fundraising partner over a $50-million endowment that was raised for the zoo.

The ruling came after the Los Angeles city attorney’s office argued that GLAZA had filed for Chapter 11 bankruptcy to delay the city’s lawsuit over control of the endowment, which funds much of the zoo’s special projects, capital improvements and exhibit construction.

The city sued GLAZA — its partner for more than half a century — in 2024, accusing the organization of breach of contract over fundraising issues, refusing to transfer zoo data and claiming exclusive control over the zoo funds, among other issues.

Los Angeles owns and operates the zoo and partnered with GLAZA in 1963 to manage fundraising, special events and other services.

In June, the city secured a preliminary injunction barring GLAZA from retaining or distributing the endowment after its operating agreement with the zoo expired last year.

“We are pleased that the Bankruptcy Court recognized GLAZA’s bankruptcy filing as yet another bad-faith attempt to derail the ongoing litigation for its own benefit,” City Atty. Hydee Feldstein Soto said in a statement.

A spokesperson for GLAZA could not immediately be reached for comment, but the organization had previously told The Times that it owes its creditors; this includes more than $300,000 to a law firm that has represented the nonprofit in its legal fight with the city.

“The City has designated an army of eight attorneys to overwhelm GLAZA with endless discovery, depositions, and court filings all to run up GLAZA’s legal fees,” the nonprofit said in a statement to The Times. “As a result, GLAZA has been left with no options other than to seek protection from the bankruptcy court to ensure the survival of GLAZA and the protection of its donors.”

In her statement, Feldstein Soto argued that GLAZA spent more than a million dollars over the last year or so — at least $748,000 to its president and at least $390,000 to its lawyers — all in an effort to prevent the city from recovering the endowment.

The ruling is the latest development in a messy split between the two entities as the L.A. Zoo continues to struggle.

The zoo, which houses more than 1,600 animals, has become dilapidated over the years. Exhibits for lions, bears, sea lions and pelicans have closed because they need major renovations. The last two elephants, Billy and Tina, were transferred last year to the Tulsa Zoo after decades of campaigns by animal rights advocates over living conditions and a history of deaths and health challenges. Animal rights groups had long sought to have the elephants moved to a sanctuary.

The 59-year-old zoo, which occupies 133 acres in the northeast corner of Griffith Park, has also struggled to maintain its national accreditation, with federal regulators finding peeling paint and rust in some exhibits.

U.S. Department of Agriculture inspectors and the Assn. of Zoos & Aquariums found a “critical lack of funding and staffing to address even the most basic repairs,” L.A. Zoo officials wrote in a budget document in November 2024.

Last month, a Los Angeles County civil grand jury report found L.A.’s budget shortfalls and dwindling zoo membership would make it difficult to maintain the zoological park in the long term.

To safeguard the zoo’s legacy, the report recommended finding a new owner by next spring.

Times staff writer Noah Goldberg contributed to this report.