Dr. Phil's Network, Merit Street Media, Declares Bankruptcy and Pursues Legal Action Against Partner

Merit Street Media Group, under the ownership of Dr. Phil McGraw, renowned for his daytime talk show, has initiated bankruptcy proceedings just short of two years since its founding.

The entertainment and television corporation sought Chapter 11 bankruptcy safeguard on Wednesday in the Northern District of Texas U.S. Bankruptcy Court. The plea follows shortly after a second round of layoffs that affected 40 employees, subsequent to a reduction of over a third of its workforce earlier in August 2024.

Established in 2023, Merit Street Media aimed to become among the broadest-reaching new networks globally. Partnering with the Christian-oriented Trinity Broadcasting Network (TBN), the network's programming featured well-known TV figures like Nancy Grace, Bear Grylls, and Steve Harvey, led primarily by Dr. Phil, who was the network's flagship personality.

At its inception, Dr. Phil declared, "Merit Street Media aims to offer resources and strategies to protect America and its families from an unprecedented wave of cultural challenges. I am deeply devoted to this nation, believing family structures are the pivotal support of our society. We will join forces to protect the fundamental values and sanity of American life."

In the filed bankruptcy petition, the company based in Fort Worth, Texas listed its assets and debts to be in the range of $100 million to $500 million as per court documents.

Additionally, on Wednesday, Merit Street filed a lawsuit against TBN, confirmed by a company representative.

"Merit Street Media has initiated legal proceedings against Trinity Broadcasting Network, accusing them of not fulfilling important commitments, including national distribution agreements vital to the network’s sustainability," a spokesperson explained to CBS News. "This lawsuit is a component of a comprehensive restructuring strategy also started by Merit Street Media."

When approached for further comments, Merit Street Media was not immediately responsive to CBS MoneyWatch. Meanwhile, both live and on-demand content was still accessible on their website, Merittv.com, at the time of the announcement.