Joe Francis' 'Girls Gone Wild' Company Files for Bankruptcy to Fight Multi-Million Dollar Debts


Joe Francis


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.

© AceShowbiz.com


MORE FROM NEWS

Leave a Comment

Required fields are marked with *

   

TODAY'S HEADLINES

  1. Kim Kardashian Hits Back at Haters Over Her Unretouched Bikini Photos
  2. Kim and Kourtney Kardashian Flaunt Beach Bodies in Skimpy Bikinis During Mexican Trip
  3. George and Amal Clooney Reportedly to Spend Over $1 M on a Royal-Like Delivery Experience
  4. 'Dancing with the Stars' Features Shocking Elimination on 'Boy Bands and Girl Groups' Night
  5. Aaron Hernandez's Male Prison Lover Is Allegedly Revealed, Lawyer Denies Gay Rumor
  6. Kim Kardashian's 'Jealous' of Kourtney's Hot Beach Body
  7. Scott Disick Hangs Out With Khloe Kardashian Look-Alike in the Beverly Hills Hotel
  8. 'The Voice' Live Top 12 Eliminations: Who Is the First to Get Sent Home?
  9. Scott Gimple Teases Rick's Death in 'The Walking Dead' Season 8
  10. 'Delusional' Drake Is Still Not Over Rihanna, but She Won't Give Him Another Chance

CELEBS PHOTO