Girls Gone Wild founder Joe Francis
Girls Gone Wild, the longtime king of the softcore porno market has filed for bankruptcy. The company owes millions of dollars to various creditors, CNN reports.
Here’s what you need to know…
1. Most of GGW’s Debt is to Casino Owner Steve Wynn
Las Vegas Mogul Steve Wynn
The Atlantic reports that the move that GGW has taken into bankruptcy is mainly to protect itself from the money it owes to Steve Wynn.
Link:
The beef that Francis has with Wynn stretches back to last year when the GGW founder ran up a $2 million gambling debt at a Wynn-owned casino. For some reason, Francis told the media that Wynn had threatened physical violence if the money was not repaid swiftly. Which led Wynn to sue Francis for defamation, with Wynn being awarded the sum of $40 million. It has since been lowered on appeal and Francis is still appealing for further reductions.
2. The Bankruptcy Impacts Every Facet of the GGW Empire
Including such classics as: GGW Brands, GGW Direct, LLC, GGW Events and GGW Magazines.
3. The Company Assets Appear to be Miniscule
In the claim, GGW reportedly owes $16.5 million while only having $50,000 in assets. That’s not good math. Francis wasn’t named in the legal documents, they were signed by group manager Chris Dale. According to Bloomberg.com, Francis hasn’t owned the company “for years.”
4. The Company is One of the Biggest Names in Softcore Pornography
According to a New York Times report from 2004:
[Joe Francis’] videos show often wholesome-looking girls — ”the ones you wouldn’t expect to do it,” in the words of Mia Leist, 25, his production manager — flashing above and below the waist, kissing one another and exhibiting all kinds of ”wild” behavior, all in the party atmosphere of a wet T-shirt contest. Mr. Francis said he believes young women agree to be filmed for the attention and for their 15 minutes of fame.
5. A Statement From GGW Compared the Company to American Airlines
With absolutely no delusions of grandeur, Girls Gone Wild, have compared their to both AA and General Motors in a statement. Hmmm. It reads:
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.
6. Sadly, Joe Francis Will Get to Keep Most of His Personal Money
Reportedly, you’ll be grateful to know, that Joe Francis personal money won’t be affected. Estimates calculate his wealth at around $150 million. How depressed does that make you? That douche has $150 million.
7. GGW Filed For the Ruling on Wednesday
The company filed at the US Bankruptcy Court for the Central District of California.
The CACB site comes equip with some helpful advice for the Girls Gone Wild team:
You are a Debtor if…
You are a person or organization that has borrowed money from another party
You cannot repay the money owed by the time it is due and have filed bankruptcy.Bankruptcy has long term financial and legal consequences, and hiring a competent attorney is strongly recommended.
8. The GGW Website is Still Up-And-Running
Softporn and drunk girl viewers rejoice, there doesn’t seem to be a problem with watching or buying Girls Gone Wild products right now. C’mon guys dig deep, this is the company’s time of need.
9. Joe Francis is no Stranger to the Courts
Added to the loss in court to Wynn, Joe Francis has had an active recent legal past:
France attempted to sue city officials in Panama City, Florida in 2003 who attempted to block him from filming one of his opuses.
A racketeering charge was also brought up against Francis by Panama City officials in 2006, despite most of the evidence being ruled out by a judge, Francis was still sentenced to community service and forced to pay a $1.6 million fine on a related record-keeping charge.
Back in 2008, four women accused Girls Gone Wild of filming them while they were underage. Francis was cleared in that case, by an all-female jury.
A 2007 tax evasion charge in Nevada eventually found Francis guilty and sentenced to time-served. During his time in Bay City Jail, Francis was found guilty of having sleeping pills in his cell. For this he was forced to pay a $60,000 fine. A Reno judge also forced Francis to pay a fine of $250,000 in restitution to the IRS.
10. Girls Gone Wild Owes Big Money to Tamara Favazza
Tamara Favazza was in a bar in St. Louis, Missouri where GGW was filming one of their segments. Favazza alleges that her breasts were exposed without her consent and she was harassed. The title being filmed at the time was Girls Gone Wild Sorority Orgy.
Favazza won a $5.8 millino settlement against Francis, GGW, and Mantra Films in a Missouri court. Now it’s being claimed, by Favazza, that Francis has avoided paying her through renaming his businesses. In documents filed in court on Wednesday, the debt owed to Favazza was cited as a “trade debt.”