Video empire Girls Gone Wild (GGW) files for Chapter 11 bankruptcy after mounting debt and legal issues. The racy girls’ video empire seeks protection while disputing multi-million dollar claims including a legal judgment of $10.3 million from Wynn Las Vegas, one of its biggest creditors.
Joe Francis is behind Girls Gone Wild and its multiple brands including GGW Magazines LLC and GGW Events LLC among a few others. Documents related to the filing claim the brand have liabilities totaling over $16 million with assets averaging $50,000. Several sources say the filing may be an action to prevent collection efforts from Wynn. When the petition was filed in Los Angeles it stated the debtors would not have funds available to distribute to creditors.
Francis became known for the GGW brand that features young girls acting inappropriately on camera with each other. Unfortunately, he has been facing mounting legal issues within the last year. Francis faces a lawsuit in the amount of $5.8 million from a woman who claims she was videotaped topless by GGW cameras without her permission.
Steve Wynn, founder of Wynn Resorts, has a claim against the GGW brand for over $10 million, but Francis claims Wynn has made threats against him for not making payments. The outstanding liability is in relation to gambling debt with Francis appealing the ruling. An unpaid multi-million dollar fine in regards to failing to comply with laws regarding protection of underage girls and income tax liabilities are other legal battles.
The GGW brand claims it is going strong and decided to file to restructure the company while handling legal affairs.
Reference: http://www.stltoday.com/news/local/crime-and-courts/girls-gone-wild-bankruptcy-linked-to-st-louis-lawsuit/article_3d4e8129-42dd-5333-8788-c511772c982e.html
http://money.cnn.com/2013/02/28/news/companies/girls-gone-wild/