Home > News > Empire Video’s Roy Karch Files for Bankruptcy • Bookmark   • Newsletters   • Register Search Options

NEWS STORY

Empire Video’s Roy Karch Files for Bankruptcy

Karch posted $990,907.77 in debts
Empire Video’s Roy Karch Files for Bankruptcy
Get XBIZ News
Jul 20, 2009 4:00 PM PDT    Text size: 
WEST HILLS, Calif. — The owner of shuttered adult DVD one-stop Empire Video Distributors filed for bankruptcy on June 23. Roy Karch abruptly closed his Chatsworth, Calif. facility in February after 12 years in business owing hundreds of thousands of dollars in unpaid invoices.

Empire Video’s Roy Karch is not to be confused with the long-time director of the same name.

In his Chapter 7 bankruptcy filing Karch claims debts totaling $990,907.77 against assets of $35,500. According to the filing, Karch owned 89 percent of Empire Video and had full ownership of Pacific Coast, Epic Interactive and 75 percent of Xcartel, though there is an ongoing dispute with Xcartel co-owner Javier C, who claims he shared a 50-50 ownership split with Karch.

Karch’s biggest creditors include Jules Jordan Video to which he claims $65,463 is owed; LFP Video has accounts receivable totaling $105,654; Platinum X Pictures has $50,320 in outstanding invoices; and Private is out $23,867.

Collecting Empire Video’s debts is unlikely for its creditors given that none of the companies Karch owned or had a stake in is worth anything.

Stock in Pacific Coast, which ceased operations in February, still has some accounts receivable for which collection is doubtful. It’s stock was valued at zero dollars. Epic Interactive produced five or six short movies that were sold through Xcartel and its only assets are the DVD distribution rights to about 80 titles of which the value is extremely limited. It’s stock was valued at zero, too. Despite the ownership squabble, the assets of Xcartel were valued at zero.

Karch claims some of Empire’s woes were due to an unscrupulous warehouse manager that was shipping product without invoicing it. Sales consistently dropped for the company as content delivery shifted towards the Internet, but the company is “still collecting accounts receivable and attempting to pay down corporate debt, which far exceeds the value of the collectible receivables.”

Attempts to reach Karch for comment were unsuccessful.

More ways to get XBIZ News:  RSS Feeds  |  E-Newsletters  |  Desktop Widget  |  Mobile
Looking for porn star news and behind-the-scene videos? Check out XFANZ.com !

BUSINESS ANALYSIS

Sex Toy Manufacturers Talk Retailer, Distributor Support

The pleasure products industry, at its best, is a well-oiled machine consisting of manufacturers, distributors and retailers. Distributors make sure that products get from Point A to Point B, while retailers... More »

Pleasure Product E-commerce Experts Discuss Latest Trends

Adult mail order is a concept that has existed for many years. Phil Harvey famously operated a groundbreaking mail order business for adult products during the 1970s. But e-commerce has expanded the concept... More »

Adult Retailers Predict Consumer Trends for 2017

When adult e-commerce was exploding in popularity in the 2000s, some tech writers predicted that brick-and-mortar adult stores would be meeting their demise. But those obituaries were premature. E-commerce,... More »
XBIZ NEWSLETTERS
Stay informed of the latest industry developments. Get XBIZ newsletters delivered to your inbox. Subscribe today!
Enter email address:

* To manage existing subscriptions click here.






POPULAR PRODUCTS & SERVICES
Submit your press release to
multiple news outlets with 1 click.
Subscribe to RSS news feeds or
add free content to your website.
Access XBIZ news and articles
with your mobile device.
Access the latest issues of the industry's leading trade publications in digital form. View online or download for offline viewing.

UPCOMING EVENTS

The European Summit

Mar 04 - Mar 07
Barcelona-Sitges, Spain

The TEA Show

Mar 05 - Mar 06
Hollywood, CA

Phoenix Forum 2017

Mar 23 - Mar 26
Tempe, Arizona

EXXXOTICA Denver

Mar 31 - Apr 02
Denver, CO.
Everyday thousands of business professionals browse XBIZ's industry directory for quality products and services. Not listed yet? Your company could be losing potential new business. Submit your company today!
Use XBIZ RSS feeds to stay informed of the latest industry developments or as a content syndication tool for your website!