Girls Gone Wild has filed for bankruptcy stemming from the loss of a lawsuit last year, US Weekly reported Thursday.
Wynn Las Vegas was awarded a $7.5 million judgment for defamation after Joe Francis claimed that casino owner Steve Wynn threatened to kill him.
But it didn’t stop there. A jury later awarded Wynn an additional $20 million for punitive damages and slander.
In a statement to Us Weekly, Girls Gone Wild said, . "Yesterday several of the U.S. operating entities for Girls Gone Wild joined the ranks of companies like American Airlines and General Motors having sought reorganization under Chapter 11 of the United States Bankruptcy code. Girls Gone Wild remains strong as a company and strong financially.
"The only reason Girls Gone Wild has elected to file for this reorganization is to re-structure its frivolous and burdensome legal affairs. This Chapter 11 filing will not affect any of Girls Gone Wild's domestic or international operations. Just like American Airlines and General Motors, it will be business as usual for Girls Gone Wild."
Francis told Us Weekly that filing was strictly for business reasons and had nothing to do with his alleged reckless personal spending, "I was not involved in the bankruptcy filing and my personal finances are not affected at all."
Salon.com reports that Girls Gone Wild fling for bankruptcy does not mean the end of the company.
“But don’t rejoice just yet,” Salon.com reported. “ Joe Francis, the man who made millions by coaxing intoxicated coeds (and underage girls) to flash their breasts with beads and free T-shirts, is still completely awful and unapologetic. And, if you believe a spokesman for the company, “Girls Gone Wild” may still rebound. A spokesperson said in a statement that the move is strictly an effort to “restructure its legal affairs,” going on to say that “‘Girls Gone Wild’ remains strong as a company and strong financially."
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