March 01, 2013 01:53:30 GMT
The company says they need to 're-structure its frivolous and burdensome legal affairs,' claiming they have $16.3 million in debt and less than $50,000 in assets.
"Girls Gone Wild", the company behind racy videos featuring scantily-clad women flaunting their assets, has filed for Chapter 11 bankruptcy. The Joe Francis-founded brand is seeking reorganization, citing multi-million dollars in debts following his lost in court battles against Steve Wynn and a woman named Tamara Favazza.
Claiming that they only have assets of less than $50,000, GGW owes Wynn $10.3 million. Francis was ordered last year to pay the Wynn Resorts casino owner $40 million in damages for defamation and emotional distress after a Los Angeles jury found that Francis had falsely accused the Las Vegas casino honcho of threatening his life over a $2 gambling debt.
In the paperwork, the company lists Favazza as their second-biggest creditor. The woman won a $5 million lawsuit against the company after someone exposed her breasts without her consent while filming in a bar in St. Louis for one of its racy films.
"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," a statement from GGW read. "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."
"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," they added.