Dr Phil's TV Network Ordered Into Liquidation as Bankruptcy Trial Ends in Defeat
By Fiyin Olowokandi on October 29, 2025 at 6:30 PM EDT
Dr Phil's media company, Merit Street, has found itself in hot water after losing a major court battle following its bankruptcy case.
After the trial, the court found that Dr. Phil McGraw was not entirely honest in handling the case and may have tampered with crucial evidence.
Meanwhile, Merit Street is also involved in a separate legal battle, suing Trinity Broadcasting for allegedly breaching a $500 million deal.
Dr Phil's Merit Street Has Been Ordered To Be Liquidated
Dr Phil's media company has been embroiled in a tense legal battle over bankruptcy. The Hollywood Reporter has now confirmed that the judge in charge of the case, U.S. Bankruptcy Judge Scott Everett, has rejected Dr Phil's bid to keep the case in Chapter 11.
This means that, instead of allowing Dr. Phil to remain in control of the company through Chapter 11 bankruptcy and allowing the business to reorganize and recover, the case will proceed to Chapter 7 liquidation. As such, the company will be shut down and its assets sold off to pay debts.
The court's decision was based on the finding that Dr Phil may have deleted important text messages and attempted to manipulate the bankruptcy by paying certain creditors and ignoring others. Everett also stressed that the TV host's lack of complete honesty played a significant role in the court's ruling.
"Candor to the court is critical," the judge said. He also argued that Merit Street's business was "as dead as a doornail" when the bankruptcy claim was filed.
Dr Phil's Legal Team Intends To Appeal The Court's Ruling Strongly
Although Everett remains firm in his court ruling, Dr Phil's legal team doesn't plan to go down without a fight. The team insists that, despite the court's determination, there was no destruction of crucial evidence by Dr Phil.
A spokesperson for McGraw's production banner, Peteski, confirmed this, saying, "We take great exception to the court's improper assertions regarding the alleged destruction of evidence, which simply did not happen."
He added, "We will not let this stand given all that Dr. Phil and Peteski Productions have done to protect Merit Street employees, distributors, and other interested parties and to resolve this unfortunate situation."
Dr Phil's New Media Company Signed a Charter Deal
Two weeks after Merit Street Media filed for bankruptcy protection, Dr Phil unveiled a new cable and streaming outlet, Envoy TV. However, weeks before Merit Street lost its bankruptcy case, Envoy TV signed a distribution deal with Charter Communications.
As a result of the new deal, Envoy TV will be made available to Charter's video customers in several targeted areas, including Los Angeles, New York, and the Dallas-Fort Worth area.
Per The Hollywood Reporter, Envoy TV is set to operate like Merit Street and will offer a wide range of programs hosted by Dr Phil and other contributions from Steve Harvey.
The TV Host Was Sued For Losing An Unpublished Domestic Violence Book
Dr Phil is no stranger to court cases. Besides his media company's bankruptcy case, he was also dragged to court in 2023 for allegedly losing the only copy of a book Brianna Norwood wrote on domestic violence.
As reported by The Blast, Norwood claimed that she sent the only copy of the book to Justin Arluck, a senior producer on the "Dr. Phil Show," as she prepared for an interview in the studio.
Despite repeated promises that the book would be protected and returned to Norwood, it was allegedly not. Norwood claimed that she repeatedly asked for the book between 2020 and 2023 and even reached out to Dr Phil.
The TV host allegedly eventually "admitted the book had negligently been lost and was not in the possession of the Dr. Phil show, Dr. Phil Calvin McGraw, or Justin Arluck."
Dr Phil Supported Sydney Sweeney Amid American Eagle Ad Backlash
Even as Dr. Phil faced legal challenges on all sides, he didn't shy away from publicly supporting high-profile personalities.
In August 2025, actress Sydney Sweeney came under fire for a controversial ad she did for American Eagle, and Dr. Phil publicly defended her.
According to The Blast, the author addressed the heavy criticism Sweeney received, saying that the public was downplaying the Holocaust by likening it to the American Eagle ad. He then vowed to buy jeans from the clothing brand to show solidarity with Sweeney.
