'Girls Gone Wild' Files For Bankruptcy So Vegas Mogul Steve Wynn Can't Get Its Money
The empire filed for bankruptcy to protect its assets from casino mogul Steve Wynn, who won a $20 million defamation suit against Francis.
The "Girls Gone Wild" founder also owes Wynn a $2 million gambling debt and $7.5 million from a separate defamation suit, according to the Journal.
By filing for bankruptcy, GGW Brands Inc. can stop Wynn from suing to go after its assets. Instead, Wynn will have to go through a bankruptcy court to try to get cash.
Wynn's lawyers have accused Francis of avoiding his collection efforts and pretending to have no cash while living a "lavish lifestyle," according to the Journal.
Ronald Tym, a lawyer who represents GGW Brands, told Business Insider that Wynn's claims that GGW owes him money are meritless.
"One of the things that will be accomplished through the bankruptcy process is the weeding out of such meritless claims so that the GGW entities may continue with their business as usual and continue to timely pay their deserving employees and trade creditors," he said in an email message.
Francis' "Girls Gone Wild" empire, which features footage of young college women, has had separate trouble over allegedly airing footage of an underage girl.
Clarification: An originally published version of this article stated that Francis put GGW in bankruptcy protection. The company's manager Chris Dale actually authorized the filings.