Merit Street Media, the media startup founded by television personality and psychologist Dr. Phil McGraw, filed for bankruptcy on Wednesday in the Northern District of Texas, according to court documents.
The company reported assets and liabilities between $100 million and $500 million. As part of the bankruptcy proceedings, Merit Street is also suing its broadcast partner, Trinity Broadcasting Network.
“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 said. “The suit is part of a restructuring proceeding also initiated by Merit Street.”
Under their joint venture agreement, Trinity was supposed to deliver comprehensive distribution and production services to help launch and operate the new television network—at no cost to Merit Street. According to court filings, Trinity failed to meet those obligations, which resulted in Merit Street accumulating “considerable” liabilities totaling around $96 million tied to broadcasting contracts.
A representative for Trinity Broadcasting Network did not immediately respond to a request for comment.
To keep the company afloat while seeking investors earlier this year, Peteski Productions—Dr. Phil’s long-standing production company—infused Merit Street with $25 million in debt between February and May. Court documents show Peteski has also committed up to $21.4 million in debtor-in-possession (DIP) financing to support Merit Street through the bankruptcy process. Of that, $13.4 million represents new funding, while the remainder rolls over existing bridge loans.
McGraw launched Merit Street Media in 2023 following the conclusion of his syndicated daytime show, Dr. Phil, which stemmed from his breakout appearances on The Oprah Winfrey Show. Merit Street’s lineup includes a new talk show hosted by McGraw and a morning news program.
The company recently laid off around 40 employees and had approximately 66 full-time salaried staff members—including on-air talent—at the time of the filing. Recent programming has included segments featuring McGraw embedded with ICE officers during immigration enforcement operations.
The Chapter 11 filing halts creditor actions and gives Merit Street time to either restructure its operations and reduce debt or seek a potential sale.
The case is Merit Street Media, Inc., No. 25-80156, filed in U.S. Bankruptcy Court for the Northern District of Texas.
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