Celebrity television personality and producer Dr. Phil McGraw has suffered a major business setback after a U.S. bankruptcy court ruled that his media venture, Merit Street Media, will be liquidated. The decision ends attempts to reorganize the company under Chapter 11 bankruptcy protection and places its remaining assets under the control of a court-appointed trustee.
The ruling applies only to the corporation, not to McGraw personally. Dr. Phil, who rose to international fame through The Dr. Phil Show, remains financially secure, with an estimated personal net worth of about $400 million built over decades in television. His long-running daytime program earned him more than $600 million in income during its broadcast lifetime.
However, the court’s judgment underscores the significant challenges McGraw faced transitioning from television presenter to media network owner. Merit Street Media launched in 2024 with the goal of offering family-oriented programming, led by McGraw’s nightly show Dr. Phil Primetime. The venture was announced as a $500 million partnership between McGraw’s Peteski Productions and the Trinity Broadcasting Network (TBN), which would provide distribution and studio support.
Within months of launch, the network faced mounting financial pressure. Partners and suppliers accused Merit Street of failing to meet contractual obligations, and industry reports indicated widespread internal disputes over costs and content delivery. By mid-2024, creditors were seeking large payments, including a claim of $181 million from Professional Bull Riders (PBR).
Merit Street filed for Chapter 11 reorganization in July 2025 while simultaneously entering a legal dispute with TBN, with each side accusing the other of breach of contract and mismanagement. During the bankruptcy proceedings, U.S. Bankruptcy Judge Scott W. Everett concluded that the company showed no credible path to recovery and that attempts to reorganize were not being conducted in good faith.
The court found that McGraw had formed a new company, Envoy Media, one day before Merit Street’s bankruptcy filing, and that staff and programming plans were being shifted toward the new venture. Judge Everett ruled that this suggested Merit Street was being abandoned while creditors were left unpaid. He also cited evidence of deleted text messages and preferential treatment of some investors.
“The Chapter 11 case is untenable,” Judge Everett said. “There is no realistic chance of rehabilitation.”
The ruling converts the case to Chapter 7 liquidation, ending McGraw’s control over the network and giving an independent trustee authority to handle its remaining obligations and assets.
Envoy Media, the new company associated with McGraw, has already begun operations and recently signed a distribution agreement with Charter Spectrum, giving it access to about 12.6 million households across 41 U.S. states. Some creditors and industry observers view Envoy as a continuation of the Merit Street model, a claim McGraw disputes.
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Peteski Productions said in a statement that it intends to appeal the ruling, calling the court’s conclusions “improper” and denying allegations of misconduct. The company said McGraw remains committed to maintaining employment for staff affected by the network’s closure.
The liquidation marks the end of Merit Street Media less than a year after its debut and closes one of the most ambitious—and turbulent—media ventures attempted by a major television figure in recent years.
