In a surprising move, Dr. Phil McGraw’s Merit Street Media has filed for Chapter 11 bankruptcy in the Northern District of Texas, citing an unresolved dispute with its broadcasting partner, Trinity Broadcasting Network (TBN).
This filing, which took place on Wednesday, July 2, is part of an effort to protect and preserve the value of the Merit Street brand rather than a step toward shutting down the business.
A source close to the situation exclusively shared with PEOPLE that Dr. Phil is deeply invested in the future of Merit Street Media. Despite the challenges, the source emphasizes that McGraw remains “focused, energized, and supportive” of the brand and his team.
“Dr. Phil is one of the kindest, most dedicated people. This is someone who clearly cares and always leads with integrity,” the source continued.
The Legal Battle with TBN
Merit Street Media’s bankruptcy filing comes after the network filed a lawsuit against TBN and TCT Ministries, Inc., accusing them of causing significant financial damage.
According to Merit Street Media’s complaint, TBN, as the controlling shareholder, “abused its position” by loading the company with unsustainable debt. The lawsuit alleges that TBN caused Merit Street to “pay or incur obligations to third parties in excess of $100 million.”
Most critically, Merit Street claims that TBN’s actions led to the network losing its national distribution. TBN allegedly withheld critical distribution payments, despite repeatedly acknowledging that they were responsible for them.
“As a result of TBN’s conduct, Merit Street has nowhere to send its broadcast signal and nowhere to air its programming,” the complaint asserts.
Merit Street further alleges that TBN intentionally sabotaged the network, preventing it from reaching its full potential, despite its national acclaim.
PEOPLE has reached out to both TBN and TCT Ministries for comment on the lawsuit but has yet to receive a response.
The Launch of Merit Street Media
Dr. Phil McGraw first introduced Merit Street Media in November 2023, announcing the launch of the network on X (formerly Twitter).
“I’m coming back in primetime on a whole new network called Merit Street Media,” McGraw shared in a video. He emphasized that while the network would be his, it was “our network,” focused on what audiences care about most.
This move came less than six months after McGraw’s popular daytime talk show, Dr. Phil, ended its historic 21-season run in 2023.
In April 2024, McGraw debuted Dr. Phil Primetime, his new show on the Merit Street network. The network’s programming also includes true crime content, news, and a mix of other shows.
Prominent figures such as Nancy Grace and Chris Harrison have also joined Merit Street. Grace hosts Crime Stories with Nancy Grace, while Harrison, alongside his wife Lauren Zima, hosts Through the Drama with Chris & Lauren. The network also features reruns of Dr. Phil, Steve Harvey’s show, The Island with Bear Grylls, and sports programming.
The Road Ahead for Dr. Phil and Merit Street Media
Despite the bankruptcy filing and legal battles, McGraw remains committed to the future of his network. His efforts to create a platform that resonates with audiences through programming that includes true crime, news, and lifestyle shows signify his ongoing dedication to connecting with his fans.
While the legal battle with TBN looms large, McGraw’s fans and the industry are left wondering how this situation will unfold and whether Dr. Phil can salvage Merit Street Media’s potential.
