“Girls Gone Wild” in Bankruptcy Court

On Wednesday GGW brands, the company behind the “Girls Gone Wild” video series and soft porn business filed for Chapter 11 bankruptcy protection in the U.S. federal court in Los Angeles. The company, which is famous for catering to voyeuristic audiences, is apparently trying to avoid paying up a $20 million award for damages and defamation won by Wynn Resorts casino owner Steve Wynn.

In its bankruptcy papers, however, the company listed only a $10.3 million debt owed to Steve Wynn. Another creditor listed in the papers is a woman whose breasts were exposed by someone without her consent for filming one of the company’s films in a bar. The woman won a lawsuit of $5 million.

A statement by GGW brands issued on Thursday, mentioned, “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…”

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However, Los Angeles Times reports that Steve Wynn is in no mood to give up on the rest of the $20 million award he received from a Los Angeles jury against Joe Francis, the owner of GGW brands. Wynn, who won a defamation suit against Francis is determined to have justice, and his company issued a statement to the effect on Thursday.

Michael Weaver, Wynn Las Vegas’ senior vice president of marketing said, “Our judgments are not against Joe Francis’ companies, but rather against Mr. Francis personally … Consequently, these recent bankruptcy filings by the GGW companies will not slow our efforts to collect on our judgments against Mr. Francis.”

Comparing his business to American Airlines, Francis said in his statement, “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.”

The war between Francis and Wynn began, when in 2007, Francis went on a gambling spree in Wynn’s casino and received a bill of $2 million. Francis refused to pay and the casino sued. Francis accused Wynn’s establishment of deceptive practices, and Wynn filed a defamation suit. Then Francis told reporters that Wynn had threatened to kill him, and Wynn filed a slander lawsuit in which he won a $20 million judgment. Wynn also won the defamation suit in Nevada resulting in a $7.5 million judgment in his favor.

In all, Wynn is in a position to claim more than $30 million if everything is to be counted.

Posted by Scott on March 1, 2013. Filed under Breaking News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.