Girls Gone Wild is Now a Bankrupt Company

Remember the days when “Girls Gone Wild” seemed to be rolling in money?  Those days are officially gone, since the company has now filed for bankruptcy protection from it’s creditors.   The company is sitting on $16 million in debt and has to file in order to avoid a $10.3 million dollar lawsuit from Steve Wynn, owner of the Wynn Resorts in Las Vegas.

Joe Francis, the company’s founder, says that Wynn threatened to kill him over his debts, which included millions owed for gambling.

In documents filed with the court, GGW manager Chris Dale said the company has less than $50,000 in assets and fewer than 50 creditors, which is a far cry from where the company stood many years ago.  In the past, the firm did millions of dollars in advertising and seemed to be the biggest horse in its own financial game.  When filing the bankruptcy forms, the company’s executives checked the box claiming “there will be no funds available for distribution to unsecured creditors.”

“Girls Gone Wild remains strong as a company and strong financially,” the company said in a statement, likening itself to other businesses such as American Airlines and General Motors that have filed for bankruptcy to restructure. “The only reason Girls Gone Wild has elected to file for this reorganization is to re-structure its frivolous and burdensome legal affairs.”

The second largest claim listed in the proceedings is a nearly $5.8 million judgment a St. Louis woman won against Francis last year in a Missouri court. Tamara Favazza sued after she learned she had been featured on a “Girls Gone Wild” DVD over an incident when she was a 20-year-old college student and someone lifted her tank top at a bar and flashed a camera.

Francis and his company, Mantra Films, are seeking to have the judgment overturned in federal court.

Comments

comments