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Media company Merit Street Media, founded by television personality Phil McGraw (widely known as Dr. Phil), has been ordered into liquidation following a landmark bankruptcy ruling. The U.S. Bankruptcy Court for the Northern District of Texas found that the company should proceed under Chapter 7 rather than Chapter 11, meaning its assets will be sold off to satisfy creditors rather than allowing the business to attempt restructuring.
The company originally filed for Chapter 11 bankruptcy protection in July 2025, listing assets and liabilities ranging between $100 million and $500 million. The filing came amid a bitter dispute with its major partner and distributor, the Trinity Broadcasting Network (TBN), which the company accused of failing to fulfill key contractual obligations. According to company filings, TBN allegedly withheld essential distribution rights and financial commitments, severely hampering Merit Street’s ability to reach audiences and generate revenue. The network claimed it was forced into debt and operational failure as a result.
In court, Judge Scott W. Everett expressed serious concerns about merit Street’s handling of evidence during the bankruptcy proceedings. Among the issues cited was the deletion of a text-message that the judge described as significant to the discovery process. These findings weighed heavily on the decision to convert the case to a Chapter 7 liquidation and appoint a trustee to sell assets rather than allow the company to continue operations during a restructuring process.
Merit Street Media, which launched in April 2024 with ambitions to become a major cable and streaming network, initially featured programming such as Dr. Phil Primetime, true-crime shows and a lineup of well-known media personalities. However, the network soon began facing operational woes. It conducted multiple rounds of layoffs, first in late 2024 and again in mid-2025. It laid off substantial portions of its workforce and suspended production on marquee programming.
Insiders say the liquidation order could impact the entire library of content, broadcast licenses, and streaming rights tied to Merit Street, which will now be sold under court supervision. While Dr. Phil remains a high-profile figure and continues other ventures, the collapse of his startup media network adds a notable shift to his career. Dr. Phil’s team has announced plans to launch a new venture, but the liquidation of Merit Street Media represents a major setback.
