COLT Studios Declares Bankruptcy

COLT Studios is officially bankrupt. If you remember, we wrote back in June that Prowest Media (the company that bought COLT) had declared bankruptcy. We wondered if COLT was soon to follow; apparently it was. Somewhat odd considering that the studio is still releasing scenes.
We just got our hands on their bankruptcy court filing. Here’s the highlights:
1) Jim French the founder of COLT Studios is in bankruptcy court today in Santa Rosa, California along with John Rutherford and Tom Settle, porn producers who bought COLT from Mr. French on behalf of Prowest Media.
2) When Rutherford and Settle bought COLT from French over a year ago, they promised to pay 2.3 million, but they’ve apparently been in default for over a year—partially because of COLT’s declining revenues.
3) Rutherford and Settle reportedly sold the rights of COLT to Gamma—the parent company of Buddy Profits, Next Door Male, Cody Cummings, Mason Wyler—but have still not been able to pay French his millions.
4) While the current value of COLT is essentially unknown, COLT’s sales have gradually declined from $3.5 million in 2006 to $1.6 million in 2009 losing about $800K each year. How can a porn studio go bankrupt making this kind of money?
5) The bankruptcy settlement apparently gives French the right to post “FOR SALE” signs outside of the COLT property and show it around in hopes of making $2,495,000.
Anybody wanna buy a porn empire? On a happier note, gays can marry in California again!