Girls Gone Wild Bankruptcy Filing: Adult Company Owes Up to $50 Million
Girls Gone Wild's bankruptcy was brought on by legal troubles concerning the company's founder, Joe Francis. The infamous adult video company claims that despite them owing anywhere from $10 to $50 million because of legal judgments, they are still in strong financial standing.
Girls Gone Wild, or GGW Brands LLC, filed for Chapter 11 bankruptcy Wednesday, bringing the company's financial struggles into sharp focus. The company has several big bills it must pay before coming out of the red.
The first of the legal claims came from Wynn Resorts Limited. Wynn Resorts sued Francis for $10.3 million to settle a gambling debt in his casino and for potentially slanderous statements made against the owner, Steve Wynn.
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The slander trial took place last year, and Wynn was awarded $7.5 million in the case, according to The San Francisco Gate. Francis was accused of telling people Wynn threatened to kill him over the money he owed the casino, and the hotel tycoon was eventually awarded another $20 million in punitive damages by a jury.
Yet another legal problem for GGW Brands LLC comes from a 2011 case involving a St. Louis woman. She claimed the adult video company's cameraman recorded her breasts without permission. Girls Gone Wild is on the hook for $5.8 million from the legal judgment.
Despite the multiple lost cases, potentially owing many millions, and listing less than $50,000 in the bankruptcy filing, GGW Brands claims it is still strong financially.
"Girls Gone Wild remains strong as a company and strong financially," the company said in a statement."The only reason Girls Gone Wild has elected to file for this reorganization is to re-structure its frivolous and burdensome legal affairs."
It compared its legal trouble to that of much larger businesses like American Airlines or General Motors, saying that its videos, magazines, and web businesses will not be affected.
Francis, though he no longer owns the company, is appealing the decision.
