Jump to Navigation

'Girls Gone Wild' gone bankrupt

New Yorkers may have heard that the company responsible for the "Girls Gone Wild" series of videos and magazines is seeking bankruptcy protection. GGW Brands, LLC, and its subsidiaries, GGW Magazines and GGW Events, filed for Chapter 11 bankruptcy in late February 2013. In a statement issued regarding the filing, the company said that while it is strong financially, the move was necessary to restructure its legal affairs after a number of disputed legal claims against the company's founder, Joe Francis.

In its federal bankruptcy court filing, GGW listed more than $16 million in disputed claims, including a $10.3 million judgment awarded to Wynn Resorts Limited in connection with gambling debts amassed by Francis and statements he made about the casino and owner Steve Wynn. Also included was a $5.8 million judgment awarded to a woman whose image was included in a video without her authorization and various legal fees in both cases.

Not included in the bankruptcy petition is a $19 million judgment that Wynn won last year in a slander case against Francis. The casino mogul brought the case after Francis claimed Wynn threatened to kill him for not paying his gambling debts. That judgment remains under appeal.

When a company faces financial pressures due to unexpected expenses, Chapter 11 bankruptcy may offer a solution. A bankruptcy proceeding generally stops the collection of judgments issued by other courts and allows the company to continue operations while it restructures its debt. A New York business owner who is struggling financially because of legal judgments and litigation expenses may benefit from consulting with a qualified bankruptcy attorney. An attorney may assess whether a Chapter 11 bankruptcy proceeding would put the business on better financial footing.

Source: Wisconsin Rapids Tribune, "'Girls Gone Wild' files for bankruptcy over debts," March 1, 2013

No Comments

Leave a comment
Comment Information
Free Consultation

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close
Subscribe to This Blog's Feed Associations & Memberships:
  • New York State Bar Association
  • National Association of Consumer Bankruptcy Attorneys
Rock County New York | Town of Stony Point | Town of Haverstraw | Town of Ramapo | Town of Clarkstown | Town of Orangetown FindLaw Network

Ugell Law Firm, P.C.
151 North Main Street , 2nd Floor :: Suite 202 :: New City, NY 10956
Phone: 845-521-7841 :: Telephone: 845-639-7011 :: New City Law Office Map

Se Hable Español

Rockland County Bar AssociationMax Gardener's Bankruptcy Boot Camps | Lizmere South Mountain FarmNew York State Bar AssociationNational Association of Consumer Bankruptcy Attorneys