Judge Orders Liquidation of Dr. Phil's Failed Media Company

In a surprising turn of events, a federal judge has ordered the bankruptcy of Dr. Phil McGraw's failed television network venture, Merit Street Media, to be converted to a Chapter 7 liquidation. The judge, Scott W. Everett of the U.S. Bankruptcy Court for the Northern District of Texas, made this decision on October 26, 2025, stating that it was in the best interests of creditors.

Merit Street Media was formed as a joint venture between Trinity Broadcasting Network and Dr. Phil's Peteski Productions. The company filed for Chapter 11 bankruptcy protection on July 2, 2025, after running into financial difficulties. However, the judge found that there was never a genuine attempt at rehabilitation or reorganization, and that Dr. Phil was instead trying to "wipe out" claims against the company and pay his "favored creditors" instead of an impartial asset sale.

The judge also noted that Dr. Phil had formed a new company, Envoy Media, while the bankruptcy proceedings were ongoing, and had laid off most of Merit Street's remaining employees to work for the new venture. This led the judge to conclude that Dr. Phil was calling the shots and trying to manipulate the bankruptcy process to his advantage.

By converting the case to a Chapter 7 liquidation, the judge hopes to ensure that creditors will be treated fairly and that the assets of Merit Street Media will be sold in a transparent and impartial manner. This decision is a significant blow to Dr. Phil's plans and a victory for the creditors who were seeking a fair resolution to the bankruptcy.