A judge shut down Merit Street Media, converting its bankruptcy to liquidation due to mismanagement and fraud allegations.

A federal judge has converted Merit Street Media’s Chapter 11 bankruptcy to Chapter 7 liquidation, ending its attempt to reorganize and paving the way for asset sales under court oversight. Judge Scott W. Everett ruled the company had no viable path to recovery, calling it “dead as a doornail,” and cited concerns over Dr. Phil McGraw’s actions, including creating a new company to potentially acquire assets and deleting messages that undermined creditor fairness. The decision follows allegations of mismanagement and fraud by Trinity Broadcasting Network and a $181 million claim from Professional Bull Riders. McGraw’s team disputes the findings and plans to appeal, but the ruling marks the end of Merit Street’s operations as a going concern.