Girls Gone Wild Files For Bankruptcy

By Mack Rawden 2013-02-28 14:22:09
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Controversial pornography distributer Girls Gone Wild has filed for bankruptcy, though whether the company is actually broke or CEO Joe Francis is simply maneuvering to shield himself from several recent judgments against him is unclear. Over the last year, Francis and Girls Gone Wild have lost a more than five million dollar judgment to a girl whose top was pulled down in front of a GGW camera and a more than ten million dollar judgment to casino mogul Steve Wynn over an alleged death threat. Those bills, in addition to some outstanding sums owed to lawyers, have pushed the company to restructure.

Earlier today, Francis told TMZ the move wasn’t an attempt for GGW to ignore its debts but rather an attempt to buy time in order to come up with the most effective plan to handle the charges without selling off the assets needed to make the company profitable long-term. Three subsidiaries of Girls Gone Wild have also filed for bankruptcy, but at this time, it’s unclear whether any of those will fit into the company’s plans moving forward.

Over the years, Girls Gone Wild has made more than enough money to pay off these judgments, but much of those profits have gone into the pocket of Francis himself and others who have a stake in the company. Consequently, this bankruptcy filing shouldn’t be taken as evidence of Francis’ individual wealth but more so his unwillingness to use that individual wealth to bail GGW out right now.

We’ll keep you updated as the business tries to restructure in the most effective way possible.
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