Girls Gone Wild, the brand name known and loved by hormone- raged college students everywhere, has been forced to file bankruptcy according to a report issued by Bloomberg today, March 1, 2013.
Bankruptcies are usually the result of stagnant or declining sales that cannot keep up with general corporate expenses, but that doesn’t appear to be the case with Girls Gone Wild. The company founded by Joe Francis filed bankruptcy not due to low sales, but rather to fend off a $10.3 million debt owed to Wynn Las Vegas LLC and $5.8 million owed to a Girls Gone Wild participant Tamara Favazza who claims the company used naked images of her in its material without first receiving permission.
Wynn Las Vegas filed a slander- related lawsuit against Girls Gone Wild last year and won a $7.5 million settlement. That, plus other debts owed to Wynn Las Vegas and the money owed to Favazza, have pushed Girls Gone Wild to bankruptcy. The company claims it has only $50,000 in assets and cannot pay these extremely large legal debts.
Girls Gone Wild filed the bankruptcy “to restructure its frivolous and burdensome legal affairs”, in the words of Francis’ legal assistant Heather Brook. It was deemed necessary to protect the company from these large legal debts while it charts its next financial maneuver.
Bankruptcy will help keep the company going, and that means fans can still enjoy Girls Gone Wild merchandise. Like any other business that files Chapter 11 bankruptcy, daily operation will continue as normal so Girls Gone Wild can and will continue to sell its videos and other merchandise, much to the relief of young men everywhere.
Girls Gone Wild founder Joe Francis is no stranger to the problem of lawsuits. He has, in fact, lost several of them and much of the legal losses have been the result of lawsuits filed by Wynn Las Vegas. Some of the suits were related to gambling debt while other suits were the result of various legal mishaps. The mounting debt has taken its toll and now, Girls Gone Wild has no choice but to seek bankruptcy protection.
It may take time to satisfy legal debts, clear up the financial situation, lift the Chapter 11 bankruptcy shield, and return business to normal at Girls Gone Wild. Until that time, fans of GGW merchandise can still partake in the company’s services while it sorts out its legal issues.
Want to read more financial articles and find great money saving tips? Visit Money Saving Parent today!
I hope you enjoyed this post! Click the “subscribe” link above or below to receive automatic updates whenever a new post is made.
Comments