U.S. News

Dr. Phil’s Media Company Files for Bankruptcy

By Jake Beardslee · July 3, 2025

Phil McGraw’s media venture, Merit Street Media, has filed for Chapter 11 bankruptcy in the Northern District of Texas, citing both financial distress and a breach of contract by its broadcast partner, Trinity Broadcasting Network.

According to the court filing on Wednesday, the company lists both assets and liabilities between $100 million and $500 million. A spokesperson for Merit Street told CBS News the network is suing Trinity Broadcasting for allegedly reneging on key commitments. “Trinity Broadcasting Network is being sued by Merit Street Media for failing to provide clearly agreed-upon national distribution and other significant foundational commitments critical to the network’s continuing success and viability,” the spokesperson said.

Merit Street claims Trinity failed to deliver the no-cost distribution and production services outlined in their joint venture agreement. As a result, Merit Street accrued $96 million in broadcasting-related obligations, according to court documents.

The company has received $25 million in emergency funding from Peteski Productions, McGraw’s production company, between February and May, and is set to receive an additional $21.4 million in debtor-in-possession (DIP) financing to continue operations during bankruptcy restructuring. Of that, $13.4 million is new funding, while the remainder consolidates previous bridge loans.

McGraw launched Merit Street in 2023 after ending his long-running daytime program, Dr. Phil. The network includes his new talk show and a morning news segment. Last month, about 40 employees were laid off. At the time of filing, the company had 66 full-time salaried staff, including on-air talent.

The bankruptcy filing allows the company to pause creditor actions and either restructure or seek a sale.

The case is Merit Street Media, Inc., No. 25-80156, filed in the U.S. Bankruptcy Court for the Northern District of Texas.