Bankruptcy

In the late 1990s and early aughts, the conservative Parents Television Council struck fear in the hearts of network TV executives for its high-profile campaigns against shows it deemed too raunchy.

The watchdog group, founded by conservative commentator L. Brent Bozell III, railed against Fox’s “Melrose Place” and “Family Guy”; NBC’s “Just Shoot Me”; and the CW’s “Gossip Girl.” It also singled out CBS following the infamous Janet Jackson-Justin Timberlake “nipplegate” controversy during the 2004 Super Bowl halftime show when the singer’s breast was briefly exposed.

But the Parents Television Council Inc. — whose members lodged thousands of indecency complaints with the Federal Communications Commission — has folded. Earlier this month, the Burbank-based nonprofit filed for Chapter 7 bankruptcy in Delaware court, saying it had $284,823 in liabilities, which include staff member salaries, insurance payments and credit card debt. The filing lists $91,874 in assets.

The group’s demise reflects broad cultural changes, including a fractured media environment and consumers’ shift to streaming and social media apps such as TikTok for entertainment. Parents also have tools, including the ability to configure settings on streaming accounts to try to shield children from inappropriate content.

The PTC’s power came, in large part, from its ability to flood the FCC with indecency complaints. But the FCC, which licenses broadcasters, does not regulate streaming services, YouTube or TikTok.

The council had clout with advertisers, which put pressure on network programmers to minimize shows that would raise the group’s ire and threats of boycotts.

“I’m disappointed but I’m still very proud of what we did and what we achieved,” Tim Winter, former president of the group, said Friday. “We were able to raise awareness about so many important issues — issues that are still out there.”

“Like most businesses, it came down to money,” said Winter, who retired three years ago. “It’s just a slog out there to fundraise.”

Decades ago, the group hauled in millions of dollars in donations. The PTC boasted more than 653,000 members and supporters by 2000. However, in 2023, the most recent year of available tax reports, the Parents Television Council raised just $1.6 million, down from $4.7 million in 2007.

The group, which also went by Parents Television and Media Council, was formed in 1995 by Bozell as the Hollywood arm of his Virginia-based Media Research Center.

Bozell, long a booster of President Trump, now serves in his administration as ambassador to South Africa.

One of the PTC’s early efforts was to urge broadcasters to reserve the 8 p.m. hour for family-friendly fare. That was the custom of the networks in the 1970s; but two decades later, there was a rise in sexually suggestive content.

Over the years, the group hired analysts to monitor TV programming, published detailed reports and TV show rankings. Winter testified before a U.S. Senate committee hearing in 2007 on the impact of media violence on children.

Advertisers were sensitive to the PTC’s warnings.

“We were able to redirect tens of millions of dollars away from more explicit programming and into more family-friendly shows,” Winter said.

The PTC also spoke out against media consolidation, which accelerated in the 1990s, “the problem of having too few voices hold the microphone,” Winter said.

While it initially focused on broadcast shows, the group went after others, including Netflix when it offered the show “13 Reasons Why,” based on a book about a 17-year-old girl who died by suicide. The PTC, and other organizations, decried the series, fearing it would encourage more deaths.

Netflix responded by deleting a graphic suicide scene, and the show was later canceled.

“The media culture is no less toxic than it was years ago. And in some ways, it is more toxic,” Winter said, adding that other organizations will have to carry the mantle. “The mission is more important than ever.”

Oct. 5 (UPI) — After filing its second bankruptcy in May, the chain of Rite Aid drugstores have officially closed.

The store, which officially opened in 1962, began the large-scale shuttering of locations across the nation amid its first bankruptcy filing, in October 2023.

The company had some $4 billion in debt at that time amid lawsuits related to the company’s apparent handling of opioid medications.

In May, Matt Schroeder, Rite Aid’s CEO, said their financial woes were related to “the rapidly evolving retail and healthcare landscapes,” USA Today reports.

The store offloaded its prescription services to other pharmacies, including CVS, Walgreens, Albertsons, Kroger and Giant Eagle, and sold it’s ice cream brand to Hilrod Holdings, the outlet continued.

“All Rite Aid stores have now closed,” a statement on the company’s website now reads. “We thank our loyal customers for their many years of support.”

The chain had 89 active locations prior to the closing.

Sept. 22 (UPI) — Spirit Airlines plans to furlough 1,800 flight attendants, about one-third of cabin-crew members, to cut costs during its second bankruptcy in a year.

The airline filed for bankruptcy Aug. 30, less than six months after emerging from Chapter 11 reorganization.

The budget carrier said it was “executing a comprehensive restructuring of the airline to position the business for long-term success.” The company filed voluntary petitions for Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York.

“As we work to return Spirit to profitability, we face difficult decisions about our network, our fleet, and ultimately our workforce,” John Bendoraitis, Spirit’s chief operating officer, wrote in a memo sent to flight attendants on Monday, CNBC reported.

About 800 Spirit flight attendants already have been out on voluntary leaves of absence, which has helped the airline avoid involuntary furloughs, Bendoraitis said.

“However, there is a limit to how many people can volunteer for these types of leave, and we have reached that mark,” he said.

Spirit has about 5,200 flight attendants, who are represented by the Association of Flight Attendants-CWA.

“We have been able to mitigate harm for our workgroup until this point,” the AFA said in a message to members. “The problem is that the significant reduction of aircraft and flight hours requires a much higher reduction in force, and the company is clear that a furlough is necessary.”

Voluntary furloughs are also being offered to Spirit flight attendants starting in November, the union said.

“Management has also indicated, though not officially notified us yet, that they will be seeking changes to our contract per Section 1113 of the Bankruptcy Code. We do not have any further details on this at this time. Information will move quickly, though, and we encourage you to stay close to your AFA communications,” the AFA said.

The furlough announcement follows earlier cuts of the airline’s pilots. In the past several months, it has cut more than 500 pilot jobs.

Bendoraitis told the union, the Air Line Pilots Association, last week that that management is “available to continue to negotiate every day thereafter to reach a consensual agreement” by Oct. 1.

Earlier this month, Spirit cut routes to several cities, and United picked up some of those routes. Spirit said it will cease operations in Albuquerque, N.M.; Birmingham, Ala.; Boise, Idaho; Chattanooga, Tenn.; Columbia, S.C, Macon, Ga.; Portland, Ore.; Salt Lake City, Utah; plus California cities Oakland, San Diego, Sacramento and San Jose in October.

Damon Dash, the hip-hop mogul and record executive who co-founded Roc-A-Fella Records with Jay-Z and Kareem “Biggs” Burke, detailed dire financial straits as he filed for Chapter 7 bankruptcy last week.

The 54-year-old New York native claimed in his voluntary petition, reviewed by The Times, that he is in debt to the tune of $25.3 million. The petition, filed Thursday in Florida, says Dash makes no monthly income and has $4,350 to his name — including $100 in cash, a $500 cellphone and two guns worth $750.

A legal representative for Dash did not immediately respond to The Times’ request for comment on Monday.

Dash’s petition says he owes a total of $25,303,049.47 to as many as 49 creditors, with a majority of that (about $19.1 million) owed to the government in the form of taxes and other debts. He also owes nearly $648,000 in domestic support obligations to ex-wife Rachel Roy and ex-girlfriend Cindy Morales, the petition said. Dash and Roy were married from 2005 to 2009 and share two daughters. Dash shares a son with Morales, and has additional children from other relationships.

The petition confirms reports that Dash’s one-third share of Roc-A-Fella Records was auctioned to the New York Department of Taxation and Finance in August 2024 to help pay off his tax debt. Dash claims he is also owed a “possible” but unspecified amount of money from Burke, and also “unknown” amounts of money from his “possible” claims against actor Claudia Jordan, filmmaker Josh Webber and others he has battled in court.

“Dear Frank” filmmaker Webber and production company Muddy Water Pictures — also mentioned in Dash’s petition — sued the music entrepreneur for copyright infringement and defamation in 2019. A jury sided with the filmmakers in the spring of 2022 and ordered Dash to pay more than $800,000 in damages, but tensions from that decision have dragged into 2025. Webber last month accused Dash and the businessman’s girlfriend of hiding assets that would help pay off the hefty judgment, Complex reported.

Webber also sued Dash for libel and slander in April 2024. Dash was ordered earlier this year to pay the filmmaker $4 million.

As reports of his decision to file for bankruptcy spread, Dash seemingly took ownership of the financial revelations. On Instagram, he reshared a post from hip-hop-centric website WorldStar about his legal woes to his own page.

“Now let’s get to work #staytuned,” Dash captioned his post.

Aug. 30 (UPI) — Spirit Airlines announced it filed for bankruptcy, less than six months after emerging from Chapter 11 reorganization.

The budget carrier said Friday it is “executing a comprehensive restructuring of the airline to position the business for long-term success.” The company filed voluntary petitions for Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York.

After the filing, the South Florida-headquartered airline assured customers the carrier will continue service to most current locations.

“The most important thing to know is that Spirit continues to operate and offer high-value travel options,” Spirit said in a letter to all guests. “This means you can continue to book and travel with Spirit.

“Our flights continue to operate normally. You can use tickets, credits and loyalty points. You can continue to benefit from our Free Spirit loyalty program, Saver$ Club perks and credit card terms.”

Wages and benefits will continue for employees and contractors. Also, Spirit intends to pay vendors and suppliers for goods and services provided on or after the filing date.

“Our Team Members remain focused on offering you a safe journey, with excellent service and an elevated experience,” the airline told guests.

After emerging from bankruptcy the first time, Spirit said it planned to furlough about 270 pilots and downgrade some 140 captains to first officers between Oct. 1 and Nov. 1.

The total number of employees is 11,000.

Reorganization plans are focused on four areas:

• Redesigning its network to “focus its flying on key markets to provide more destinations, frequencies and enhanced connectivity in its focus cities.” That includes ending service in certain markets.
• Rightsizing fleet size “to match capacity with profitable demand in line with the redesigned network. This will significantly lower Spirit’s debt and lease obligations and is projected to generate hundreds of millions of dollars in annual operating savings.”
• Addressing cost structure “to build on its industry-leading cost model by pursuing further efficiencies across the business.”
• Offering three new travel options of Spirit First, Premium Economy and Value. “Spirit will take full advantage of its lower costs to offer consumers more of what they want — value at every price point,” the airline said.

In March, Spirit said it was “emerging as a stronger and more focused airline” after declaring bankruptcy on Nov. 18 after poor quarterly performances. Spirit had lost more than $2.5 billion since the start of 2020 with revenue severely affected by the COVID-19 pandemic.

After the first bankruptcy, the airline received a $350 million equity investment from existing investors to support Spirit’s future initiatives. The airline emerged from its financial restructuring, completing a transaction that equitizes approximately $795 million of funded debt.

Common shares will now be traded on the over-the-counter market and delisted from the NYSE American Stock Exchange.

After emerging from the first bankruptcy, Spirit said Ted Christie would remain as chief executive but two months later, David Davis, 58, was named president and CEO. He most recently worked as the chief financial officer and a board member of Sun Country Airlines.

“Since emerging from our previous restructuring, which was targeted exclusively on reducing Spirit’s funded debt and raising equity capital, it has become clear that there is much more work to be done and many more tools are available to best position Spirit for the future,” Davis said. “After thoroughly evaluating our options and considering recent events and the market pressures facing our industry, our Board of Directors decided that a court-supervised process is the best path forward to make the changes needed to ensure our long-term success.

“We have evaluated every corner of our business and are proceeding with a comprehensive approach in which we will be far more strategic about our fleet, markets and opportunities in order to best serve our Guests, Team Members and other stakeholders.”

After the airline released its quarterly report earlier this month, Spirit revealed that it had “substantial doubt” about its ability to stay in business over the next year, citing “adverse market conditions.” It reported a net loss of $245.8 million for the second quarter of 2025. Revenue was $1.02 billion, down 20% from the previous year.

The carrier rejected repeated acquisition proposals from rival discounter Frontier Airlines and in January 2024, JetBlue’s purchase plans of the rival airline were rejected by antitrust regulators.

Spirit has 550 daily flights to 77 destinations, through the United States, the Caribbean and South America.

In terms of market share, Spirit is 4.4%. Delta Airlines is No. 1 at 17.9%, followed by American Airlines at 17.3%, Southwest Airlines at 16.3% and United Airlines at 16.2%, according to the U.S. Bureau of Transportation statistics from June 2024 to May.

Spirit’s main hub is Fort Lauderdale-Hollywood International Airport. Its two other major hubs: Orlando International Airport and Detroit Metropolitan Wayne County Airport.

EchoStar Corp. has agreed to sell spectrum licenses to AT&T Inc. for about $23 billion in a deal that will help the company stay out of bankruptcy and fend off regulatory concerns about its airwave use.

The sale will expand AT&T’s network and add about 50 megahertz of low-band and mid-band spectrum in an all-cash transaction, the Dallas telecommunications company said in a statement Tuesday. The deal is expected to close by mid-2026, pending regulatory approval.

The White House and the Federal Communications Commission were briefed about the transaction before the announcement, according to multiple people familiar with the discussions who asked to not be identified because the talks were private. America’s leadership in wireless services has a been a priority for President Trump, according to a White House official, who said the president believes this deal will accelerate the use of the wireless spectrum.

“We appreciate the productive and ongoing discussions with the EchoStar team,” FCC spokesperson Katie Gorscak said in a statement. “The FCC will continue to focus on ensuring the beneficial use of scarce spectrum resources.”

EchoStar shares jumped as much as 85% to hit the highest level on record after the announcement. AT&T shares were largely unchanged. Bonds in the broader EchoStar universe rallied. Dish DBS bonds due 2029 soared as much as 12 cents on the dollar to 83 cents and were the biggest gainers in the U.S. junk bond market, according to Trace pricing data. Trading in AT&T bonds was more than 10 times the average for this time of day.

The purchase price is $9 billion more than EchoStar paid for the spectrum and $5 billion more than the appraised value used in securitizing the assets, New Street Research’s Philip Burnett said in a research note Tuesday. Though $1.5 billion shy of New Street’s valuation, he said, the sale price was “nevertheless a great mark on value.”

Federal regulators have been pushing EchoStar to sell some of its airwaves after concerns it had failed to put valuable slices of wireless spectrum to use, Bloomberg reported in July. The FCC launched an investigation in May into whether EchoStar was meeting its obligations for its wireless and satellite spectrum rights. The company skipped bond payments and considered filing for bankruptcy, saying the investigation had stymied its ability to make decisions about its 5G network.

In a June meeting, first reported by Bloomberg, Trump urged EchoStar Chairman Charlie Ergen and FCC Chairman Brendan Carr to cut a deal to resolve the dispute. EchoStar shopped the assets to other would-be buyers, including Elon Musk’s Starlink, Bloomberg earlier reported.

AT&T said the acquisition of about 30 MHz of mid-band spectrum and 20 MHz of low-band spectrum will strengthen the company’s ability to deliver 5G and fiber services across the U.S. EchoStar will operate in the U.S. market as a hybrid mobile network operator under its Boost brand, the company said in the statement. AT&T will be its primary network partner for wireless service.

In a separate news release, Ergen called the sale and related agreement to work with AT&T “critical steps toward resolving the FCC’s spectrum utilization concerns.”

The U.S. Justice Department’s Antitrust Division said in a statement posted on X that it has been working with the FCC and other parties for several months on the EchoStar matter and would review the transaction.

On a conference call with investors Tuesday, AT&T Chief Executive John Stankey said regulators shouldn’t be concerned that the transaction was putting too much wireless spectrum in the hands of the largest telecom carriers.

“The dynamics of what’s occurring in the market support the fact that concentration really isn’t an issue,” Stankey said. “Getting more capacity out into the market is ultimately a good thing for consumers over the long haul.”

AT&T has been spending heavily to expand its fiber-optic network across the country and previously said it would use cash savings from Trump’s tax and spending bill to accelerate those plans. In May, it agreed to buy the consumer fiber operations of Lumen Technologies Inc. for $5.75 billion, expanding its fast broadband service in major cities such as Denver and Las Vegas.

The company intends to finance the EchoStar deal with a combination of cash on hand and borrowings. AT&T maintained its earlier projections for as much as $20 billion for share repurchases through 2027. Jefferies Financial Group Inc. advised AT&T on the EchoStar acquisition.

EchoStar had $5 billion of cash on its balance sheet and subsequently committed to resuming bond payments including interest on the defaulted amounts. Its bond prices signaled that creditors weren’t expecting big losses even against the implied threat of a bankruptcy, which may have provided a fast way to get a federal judge to mediate a process that could otherwise drag on.

Solon, Griffis and Dlouhy write for Bloomberg.

FASHION accessories chain Claire’s is facing an uncertain future on UK high streets, after its US parent firm filed for bankruptcy.

It is the second time the ear-piercing favourite has declared itself bust, after previously filing for bankruptcy in 2018.

1

Its finances are now under pressure from weak consumer demand and supply chain uncertainty.

The filings showed that the parent business reported liabilities of up to $10billion (£7billion) and owed between 25,000 and 50,000 creditors.

Claire’s operates 2,750 stores worldwide, including 280 in the UK.

While British stores remain unaffected for now, the UK arm has lost £25million over the past three years and is at risk of collapsing into administration later this month.

It has been working with advisers to explore a sale or restructuring.

However, potential buyers, such as Hilco Capital, are understood to have walked away.

Retail experts say Claire’s is struggling to stay relevant.

Julie Palmer, from Begbies Traynor, said: “Claire’s low-price offering is clearly not strong enough to win over its core customers — teens and young adults — as they now have access to a vast array of affordable and convenient products online through platforms like Amazon and Temu.”

Claire’s boss Chris Cramer said: “We remain in active discussions with potential strategic and financial partners and are committed to completing our review of strategic alternatives.”

METRO BANK ON THE UP

METRO BANK has bounced back, posting a £43.1million pre-tax profit for the first half of 2025 — up from a £33.5million loss reported in the same period last year.

The lender doubled new corporate and small business loans to £1billion, and cut 8 per cent from its costs by axing a third of its workforce and reducing branch hours.

Boss Daniel Frumkin said: “Our strong performance reflects the decisive actions we have taken.”

Elsewhere, Sabadell shareholders have approved the £2.65billion sale of TSB to Santander.