Celebrity News
Dr. Phil’s Media Company Ordered to Liquidate After Court Ruling
Dr. Phil McGraw’s new media venture has hit a major setback. A U.S. bankruptcy court has ordered his network, Merit Street Media, to be liquidated after finding that the company had “no realistic path to recovery.”
Photo credit: The Wall Street Journal
The decision, handed down by Judge Scott W. Everett in Texas, ends months of financial uncertainty surrounding Merit Street, which Dr. Phil launched earlier this year in partnership with Trinity Broadcasting Network. The network was created to feature family-friendly talk shows and lifestyle programming and even served as the new home for Dr. Phil Primetime, his post-syndication television project.
Photo credit: The New York times
But things quickly took a downturn. Court documents reveal that Merit Street owes more than $180 million to creditors, including the Professional Bull Riders league, which had a multi-year broadcast deal with the company. PBR accused Merit Street of moving its assets into another venture, Envoy Media, just before filing for bankruptcy, a move the court viewed as a bad-faith attempt to shield resources. The ruling converts the company’s bankruptcy filing from Chapter 11 to Chapter 7, meaning a court-appointed trustee will now sell off its assets to pay outstanding debts.
Photo Credit: Chron
Dr. Phil’s representatives have pushed back on the judgment, saying they “strongly disagree” with the findings and plan to appeal. Despite the legal drama, the television personality still remains a dominant figure across television and digital media and recently teased new projects under his personal brand. For now, though, the once-ambitious Merit Street Media dream seems to have reached its final episode.