Valley Club Swim Club SOLD At Bankruptcy Auction For $1.46M: Club Kicked Out Black, Hispanic Kids

07/13/2010 05:12 am ET | Updated May 25, 2011

PHILADELPHIA -- A private suburban Philadelphia swim club accused of racial discrimination has been sold at a bankruptcy auction.

The Huntingdon Valley-based Valley Club was sold for $1.46 million Thursday. The club had filed for bankruptcy in November following discrimination lawsuits and a critical state report.

The gated club sits on a leafy hillside in a village straddling two overwhelmingly white townships. Last summer it revoked the memberships of 56 mostly black and Hispanic day campers, saying there were too many children and many couldn't swim. It said the decision was made out of safety considerations and race had nothing to do with it.

The club's bankruptcy trustee says once the sale is cleared by the court the money will be parceled out to the claimants.

WATCH: NBC Philadelphia spoke to campers after the incident

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Information from: The Philadelphia Inquirer,