Merit Street Media files for Chapter 11

September 2025 | DEALFRONT | BANKRUPTCY & CORPORATE RESTRUCTURING

Financier Worldwide Magazine

September 2025 Issue

Less than two years after its launch, Merit Street Media, the multi-platform network owned by former daytime talk show host Dr Phil McGraw, has filed for Chapter 11 bankruptcy protection while suing Trinity Broadcasting Network (TBN) – a global Christian media conglomerate operating 30 networks worldwide – for breach of contract.

The Chapter 11 filing, which occurred in early July 2025, follows a fresh round of layoffs and sheds further light on the financial difficulties that have beset the fledgling media company, affiliated with one of the US’ most recognisable television personalities.

According to court documents, Merit Street Media holds between $100m and $500m in assets, with liabilities in the same range. The company lists over 200 creditors, including DirecTV, to which it owes $1.7m, and Dish Network, owed $900,000. It also owes $700,000 to Peteski Productions – the Wichita Falls-based production company owned by Dr McGraw that supplies content to Merit Street.

Among its breach of contract claims, Merit Street alleges that TBN induced it into unfavourable distribution agreements, resulting in losses of $96m, while failing to provide adequate production support. The lawsuit describes TBN’s services as “comically dysfunctional”, citing incidents such as teleprompters and screens blacking out during live broadcasts, an incomplete control room operating from a truck, a non-functional mobile app for viewers and substandard video editing software.

The complaint further alleges that TBN, as the controlling shareholder, deliberately withheld distribution payments that were its responsibility, effectively cutting off Merit Street’s ability to broadcast its content. The lawsuit claims this was part of a “conscious, intentional pattern” to sabotage the network’s operations.

The suit also claims that TBN, whose distribution network reaches approximately 65 million US households, forced Merit TV into costly third party distribution deals instead of using its own network of local stations. Although Peteski Productions extended a bridge loan to support operations, Merit Street’s unstable financial position reportedly made it impossible to attract external investment, ultimately leading to the bankruptcy filing.

“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,” a Merit Street spokesperson told CBS News. “The suit is part of a restructuring proceeding also initiated by MSM.”

Merit Street launched in April 2024 following Dr McGraw’s announcement in late 2023 that he was founding a new multi-platform media company. The network’s flagship was a primetime programme hosted by Dr McGraw. At its inception, Merit Street claimed it would become “one of the most widely distributed startup networks in modern history”. It also announced a partnership with TBN. In addition to Dr McGraw’s show, the channel featured true crime and cultural programming and included well-known television personalities such as Nancy Grace, Steve Harvey and Bear Grylls.

However, the network quickly encountered financial difficulties. By July 2024, just months after its launch, TBN had allegedly failed to pay millions owed to Peteski Productions, according to the lawsuit. Merit Street is now seeking damages, including punitive damages, although no specific amount has been disclosed.

In August 2024, shortly after airing a high-profile primetime interview with Donald Trump, the company laid off approximately 40 employees – around one-third of its workforce. Another 40 employees were dismissed in June 2025 during the “summer hiatus” of the Dr Phil show. Merit TV struggled to attract a substantial audience, averaging just 27,000 viewers in primetime during 2024 and ranking 130th among broadcast and cable outlets.

Despite the bankruptcy filing, live and streaming content from Merit Street remained accessible on its website as of mid-July 2025.

In a surprising development, Dr McGraw has already announced the launch of a new media venture, Envoy Media, just weeks after Merit Street’s collapse. The new network is expected to feature some of the same talent and programming themes, although details remain limited.

Richard Summerfield