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The company that produces racy videos of half naked women dancing and drinking has filed for bankruptcy. “Girls Gone Wild” filed for bankruptcy protection citing $16 million in debts, according to court papers obtained by Reuters on Thursday.
The franchise’s founder, Joe Francis, owes a $10.3 million debt to Las Vegas gambling magnate Steve Wynn according to papers filed in U.S. federal court in Los Angeles on Wednesday.
Francis was also ordered to pay Wynn $40 million in damages for defamation and emotional distress last year after a Los Angeles jury determined the "Girls Gone Wild" founder falsely claimed Wynn threatened his life over a gambling debt.
Parent company GGW Brands said it has assets of less than $50,000, according to the court papers.
Court papers also revealed that a female complainant had won a $5 million award after shown on one of the “Girls Gone Wild” films flashing her breasts without her conscent.
"The company 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 restructure its frivolous and burdensome legal affairs," GGW Brands said in a statement on Thursday.
- Jagajeet Chiba, Gambling911.com
