As we were working on our exclusive Penthouse story, news broke about that the Penthouse bankruptcy didn’t go well and as of last week the trustee has told the judge it’s done.
Penthouse originally filed for Chapter 11 back in January. After a few months of going through the books, the trustee gave up and said there is just no way to make the company financially stable.
Trustee David Gottlieb said in a motion that Penthouse is administratively insolvent, operating at an ongoing loss and that there’s no likelihood of the company’s financial rehabilitation.
Because reorganization through Chapter 11 is not feasible, the trustee declared that he would seek to sell Penthouse’s assets in June.
It’s interesting to note that it was AFTER Penthouse filed Chapter 11, they spent a large amount of money to hire Stormy Daniels in this month’s issue of the magazine. So they could afford to do that but not pay off their creditors, really? I can’t help but wonder where that money came from.
We were able to pull together a list 7 pages long worth of creditors which includes people like agents Mark Spiegler, ATMLA and OC Modeling. web hosting company Mojo Host, Combat Zone, Nate from over at Takedown Piracy, and so many, many more – including the IRS. It’s not clear how much Penthouse owes the IRS but you can bet they will collect before anyone else when the Penthouse assets are finally auctioned off in June.
We are told by an insider that the auction is scheduled to take place on June 4th, however, there is also another hearing scheduled for that same day at 12 pm in courtroom 303 regarding a specific Penthouse asset so I’m not sure if that will hold up the auction.
More on this story as it develops …