Bankruptcy Court Slates Feb. 8 Deadline for Peach Creditors

VAN NUYS, Calif. — Peach Entertainment Network creditors have until the first week of February to file claims over the adult company’s assets, according to the U.S. Bankruptcy Court.

On Wednesday, the clerk of the court said that “sufficient assets may become available for distribution to creditors” and that creditors must file proofs of claim by Feb. 8 with the court.

Peach Entertainment on Tuesday disclosed it tapped Los Angeles attorney Nancy Hoffmeier Zamora as its Chapter 7 trustee.

Van Nuys, Calif.-based Peach, which filed for Chapter 7 in late September, operated Peach DVD, PeachDVD.com, Red Static, Late Night and Red Dragon Releasing.

Peach, according to the Chapter 7 filing, was seeing dwindling DVD sales, which amounted to only $290,000 this year, after banner years in 2007 and 2008, when Peach saw revenue climb to $2.4 million and $1.8 million, respectively.

In the Chapter 7 filing, Peach said that it was $1.8 million in debt and had $466,000 worth of assets, including video masters worth $114,000 and $203,000 of inventory.

Its largest creditor is CEO David James, who stated he lent the company more than $1.7 million in recent years.

Other creditors include Ingram Entertainment, L&M Optical Disc West, Orbitland Interactive and CAV Distribution Corp., among others.

The company was co-founded by Jim Monroe and James, who helped Steven Hirsch launch Vivid in 1984. Today, James continues as a Vivid co-CEO.

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