Girls Gone Wild Auction Called Off; No Competing Overbids

LOS ANGELES — An auction to sell off the Girls Gone Wild franchise's assets was called off last week because there were no qualified overbids submitted to the bankruptcy trustee.

In February, bankruptcy trustee R. Todd Neilson secured a stalking horse bid for $1.825 million to purchase the brand's assets, including its trademarks, domain names and litigation rights, as well as its assumed liabilities. The stalking horse bidder was an unidentified entity that put up a good-faith cash deposit of $250,000.

With the pre-arranged bid in place, the trustee had planned to drive up the purchase price of the franchise with competing bids to help pay off Girls Gone Wild's Chapter 11 claims.

But with no other qualified bids of $1.925 million — the minimum required for the auction to go on as scheduled on Friday — the auction was canceled.

Now, it is uncertain whether the stalking horse bidder will go through with the purchase agreement. A bankruptcy judge next week will consider the next step for the sale of assets.

The bankruptcy court green lighted the auction in February, approving the bidding procedures and break-up fee.

Neilson in February said he encountered several difficulties in finding a suitable buyer out of an initial 16 potential buyers, 12 of whom entered into nondisclosure agreements and received identical due diligence materials containing the debtors’ confidential financial information.

"First, the debtors are in a specialized business," Neilson noted at the time. "Several potential buyers either had moral objections to the business or concerns that they did not understand how to operate an adult entertainment business.

"Second, at least one potential buyer expressed his concern that, although the debtors were profitable in 2013, they may not be profitable in future years due to a perceived general decline in the adult entertainment industry. Finally, some buyers expressed reservations about buying the debtors’ assets, given its previous management."

Founded by Joe Francis in 1997, Girls Gone Wild's portfolio includes more than a dozen trademark and 69 websites.

Girls Gone Wild's U.S. trademarks, some multiple trademarks for various products, include Girls Gone Wild, Banned From Television, Gone Wild, Girls Gone Mobile, Guys Gone Wild and Mantra. The franchise also includes foreign trademarks for Girls Gone Wild, Banned From Television and Guys Gone Wild in Canada, New Zealand and France.

GGW Brands, one of the company's divisions, filed Chapter 11 bankruptcy in February 2013. At the time of filing, the company claimed it had less than $50,000 in assets. It currently maintains about 25 employees at its Westwood, Calif., offices.

Neilson could not be reached for comment by XBIZ.

View GGW/stalking horse bidder purchase agreement

Related:  

Copyright © 2024 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Braindance Unveils '6DOF' VR Tech

Interactive virtual reality platform Braindance has debuted its new Six Degrees of Freedom (6DOF) VR technology.

Kalani Luana Stars in Latest From Hookup Hotshot

Kalani Luana stars with Nade Nasty in the latest release from Hookup Hotshot (HUHS).

Lilyadick Makes Her TransAngels Debut

Canadian star Lilyadick has made her debut for TransAngels alongside Parker Savage in the video game-themed scene “Playing With The NPC Babe.”

Kazumi Stars in Latest From Tushy

Kazumi stars with Milan Ponjevic, Jax Slayher and Dan Damage in a new airtight scene from Vixen Media Group (VMG) studio imprint Tushy.

Kiiroo, Pineapple Support Launch 'Empower Hour' Series on FeelHubX YouTube Channel

Kiiroo and Pineapple Support have teamed up to launch the “Empower Hour” series on the FeelHubX YouTube channel.

Cherry Kiss Toplines Pat Myne's 'Anal Fetish Babes'

Cherry Kiss headlines director Pat Myne’s “Anal Fetish Babes,” from Evil Angel.

Kansas Law Firm Deploys Religion, Bunk Science While Recruiting Plaintiffs Under AV Law

Kansas-based personal injury law firm Mann Wyatt Tanksley is promoting debunked scientific theories and leveraging religious affiliation against the industry while it seeks potential plaintiffs for lawsuits against adult companies under the state’s age verification law.

UK Tech Secretary Lists Age Verification Among OSA Priorities

Peter Kyle, the U.K.’s Secretary of State for Science, Innovation and Technology, on Wednesday made public a draft version of his priorities for implementing the Online Safety Act (OSA), including age verification.

Nicole Aria Stars in Latest From Jules Jordan

Nicole Aria stars with John Strong and Zac Wild in the latest release from Jules Jordan.

Ellie Nova Is Hustler's 'Cover Honey' for December

Ellie Nova is the Cover Honey for the December issue of Hustler Magazine, appearing in a 14-page centerfold spread shot by ThisYearsModel.com.

Show More