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 …
4 Responses
How embarrassing this must be for xbiz who has been sucking up to Holland for the last two years, putting her on a pedestal.
Just another bad call among many for Helmy
It sucks that people won’t be paid like talent, agencies, etc and she probably took a bunch of $ and hid it. I hope people she owes get paid somehow.
From what I can gather no one will get paid except the IRS. There aren’t any assets claimed and there are debts of about $50 million. The only reason the IRS could get paid is because many times majority owners of a private business are personally liable, Kelly Holland will likely have to pay out of her personal assets unless she followed every IRS regulation in a very thick stack of books in regards to Penthouse.
I wonder if the lawsuit profiled on this very site about 8-9 months ago was the straw that broke Penthouse’s back. No matter, if that plaintiff gets paid it will be from Kelly’s personal assets. We could see Kelly Holland escorting to pay her bills after this one (I hope she likes wearing handcuffs, a collar and a leash) before this is all over with. Kelly could pose for her now former competition Hustler wearing nothing but a straitjacket or in a hogtie, that could bring record sales for Larry Flynt and a few hundred thousand dollars for a now severely indebted Kelly. Larry, you might want to get right on that one! 🙂