Dr. Phil’s Media Company Files for Bankruptcy Amid Dispute | Company Business News

(Bloomberg) — Merit Street Media, the startup founded by celebrity psychologist Phil McGraw, filed for bankruptcy Wednesday in Texas, according to a court filing.

The company reported assets and liabilities in the range of $100 million to $500 million. The company is also suing its broadcast partner Trinity Broadcasting Network, according to a statement from a Merit Street spokesperson.

“Trinity Broadcasting Network is being sued by Merit Street Media for failing to provide clearly agreed-upon national distribution and other significant foundational commitments critical to the network’s continuing success and viability,” the spokesperson said. “The suit is part of a restructuring proceeding also initiated by Merit Street.” 

Under a joint venture agreement, Trinity Broadcasting was obligated to provide Merit Street —at no cost— with all of the distribution and production services to launch and operate the new television network. Trinity allegedly failed to provide such services, causing Merit Street to incur “considerable” obligations of about $96 million related to broadcasting agreements, the company said in court documents. 

A spokesperson for Trinity Broadcasting didn’t immediately respond to a request for comment. 

Peteski Productions has provided “significant debt infusions” — amounting $25 million — from February through May to the company while Merit Street sought out potential equity investors. To support the Chapter 11 process, Peteski has also committed to provide Merit Street with as much as $21.4 million of debtor-in-possession financing, court documents show. Of that amount, $13.4 million is new money, and the rest are rolled-up bridge loans. 

McGraw, who parlayed appearances on Oprah Winfrey’s talk show into his own long-running syndicated program, Dr. Phil, founded Merit Street in 2023 after his daytime show ended. 

Merit Street runs a television network that includes a talk show hosted by McGraw and a morning news program. The company laid off about 40 employees last month. It had about 66 full-time salaried employees at the time it filed for bankruptcy, including show hosts. McGraw’s programming in recent months has included him embedding with Immigration and Customs Enforcement officers in immigration raids.

The Chapter 11 stops creditors from taking action against the firm and allows management to either reorganize and cut debt, or try to sell the operations in order to pay creditors.

The case is Merit Street Media, Inc., number 25-80156, in the US Bankruptcy Court Northern District of Texas.

–With assistance from Bob Van Voris and Steven Church.

(Updates with details from bankruptcy declaration throughout.)

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