COLT and John Rutherford in Bankruptcy
COLT Studio parent company Prowest Media has filed for Chapter 11 (re-structuring) seven years after John Rutherford acquired the studio from founder Jim French. The studio has made a few blockbusters since 2003 including Buckleroos and the attempt for an international line titled Olympus. COLT was facing a losing battle since the takeover against the era of amateur websites and XTube. It’s reported that sales dropped 28% in 2009 at COLT and the run rate for 2010 indicated a drop of 36%.
At the same time, owners John Rutherford and Tom Settle have filed for Chapter 7 (liquidation) for the balance owing to Jim French in the sum of US$1.45 million as part of the $2.2 million they paid for COLT. The new owners personally guaranteed the loan so Jim French has become the creditor for both and thereby the studio. The other major secured creditor is Wamu-Chase which holds the mortgage on their house in Sonoma where many Buckshot and COLT films were shot which now will be sold.
Read Gay Porn Truth – Beating a Dead Horse? COLT & its OWNERS in Bankruptcy for the full story.