Dr. Phil’s Media Empire Faces Liquidation: Inside the Merit Street Bankruptcy
On October 28, a federal judge in northern Texas ruled that Dr. Phil’s company, Merit Street Media, must move from Chapter 11 bankruptcy reorganization to Chapter 7 liquidation.
This is a major update in the ongoing Dr Phil bankruptcy 2025 case. The decision means the company’s assets will be sold off, and operations could come to an abrupt end.
Judge Scott Everett said the shift was necessary after questions surfaced about the way the bankruptcy was filed.
He called the case an “anomaly,” citing what he described as unusual conduct surrounding the company’s financial moves.
Allegations and Deleted Texts
At the center of the controversy are now-infamous text messages.
Court documents show that Dr. Phil’s legal trouble in 2025 stemmed, in part, from messages where he referred to making a “gangster move.” Then, he allegedly deleted texts suggesting that Merit Street’s bankruptcy filing was meant to shield money from certain creditors.
Dr. Phil has denied any wrongdoing. His team insists the messages have been misinterpreted and that he never intended to avoid paying debts.
They say the filing was meant to keep the business afloat after several investors pulled their support.
How Merit Street Media Started
Merit Street Media launched in 2024 as the next chapter for Dr. Phil after his long-running daytime show ended.
The network was a joint venture between his production company, Peteski Productions, and the Christian broadcaster Trinity Broadcasting Network. Dr. Phil held a 30% stake, while Trinity owned 70%.
The deal was reportedly worth around $500 million over ten years and promised hundreds of new episodes, fresh talk-show formats, and original series.
But, within a year, the partnership began to unravel. Trinity said it spent more than $100 million on production costs and loans, while Dr. Phil’s team claimed the network’s financial mismanagement caused the shortfall.
From TV Dreams to Courtroom Drama
According to court filings, Dr. Phil and his company created a new entity, Envoy Media, just one day before Merit Street filed for bankruptcy in July.
Creditors, including Trinity and the Professional Bull Riders organization, accused him of trying to shift assets away from the original venture.
The judge agreed that the circumstances raised red flags, deciding liquidation was the most transparent way forward.
In his remarks, Everett emphasized that “candor to the court is critical,” adding that the situation was unlike anything he’d ever seen before.
Dr. Phil Responds
Dr. Phil has pushed back against the accusations, calling the claims “absurd.”
He says his only goal was to preserve Merit Street Media and protect its staff during a challenging financial period.
A spokesperson said an appeal is already in the works.
His team maintains that the court’s interpretation of events was unfair and that his efforts were focused on keeping production alive, not evading creditors.
What Happens Next
With the Dr. Phil media company's Chapter 7 liquidation approved, a court-appointed trustee will now take control of Merit Street Media’s assets.
The entire process could take months while the company’s remaining contracts, intellectual property, and production resources are thoroughly reviewed.
Industry analysts say the decision is a significant blow for Dr. Phil’s attempt to reinvent himself in the streaming and cable era. While his name still carries weight in television, the future of his new media ventures is uncertain.
For now, the spotlight remains on the courtroom rather than the studio lights.