'Girls Gone Wild' Files For Bankruptcy
LOS ANGELES (CBSLA.com) — The company behind the "Girls Gone Wild" videos has filed for bankruptcy in Los Angeles to protect itself from more than $16 million in disputed debts and judgements, including over $10 million owed to Las Vegas mogul Steve Wynn, in papers obtained Thursday.
The document lists GGW's largest debt as $10.3 million owed to Wynn Las Vegas, the result of a defamation lawsuit GGW founder Joe Francis lost last year as well as gambling debts. Other creditors include Tamara Favazza, a woman who won a $5 million lawsuit against the company.
Wynn's company released a statement saying the bankruptcy filing would not deter them from seeking collections against Francis.
GGW said it has assets of less than $50,000.
The company released a statement that read: "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. 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. 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 "Girls Gone Wild" video series often show scantily clad young women drinking, flashing and dancing.
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