Home > News > Castle Megastore Recovers From Chapter 11 • Bookmark   • Newsletters   • Register Search Options


Castle Megastore Recovers From Chapter 11

Castle Megastore Recovers From Chapter 11
Get XBIZ News
XBIZ Research
Will virtual reality boost the paysite market?
Yes, it will soon
Yes, but in a few years
Out of 179 votes. Results based on votes submitted by members of XBIZ.net social network.
Aug 4, 2009 8:00 AM PDT    Text size: 
TEMPE, Ariz. — Adult retailer Castle Megastore has announced that it has emerged from Chapter 11 reorganization. President and CEO Mark A. Franks (pictured, left) has taken ownership of the company's assets under a new entity, Castle Megastore Group Inc.

The announcement comes after Castle met all closing conditions to the company's plan of reorganization, which was confirmed by the U.S. Bankruptcy Court in an order entered on May 19.

“Today marks a defining moment in the reinvention of Castle Megastore as a more customer-focused and leading adult retailer,” Franks said. "Concentrating on adding to the company’s retail locations and continuing to expand the brand are only the beginning of new plans on the horizon."

The bankruptcy petition, which was filed in March 2007, listed debts to Pulse Distribution, California Exotic Novelties, Marina Pacific Distributors, Pipedream Products, Topco Sales, Vibratex, Kama Sutra, Sin City Video, Nasswalk and Clear Channel.

Franks estimated the legal costs from all parties at "about $18 million."

"It was one of the biggest bankruptcy cases in the Western U.S.," Franks told XBIZ. "Every major bankruptcy firm in Phoenix was involved with this case. If you were a creditor, there were no attorneys left. It would have been a conflict."

Future plans for the chain include an online and in-store radio station and implementation of customer-relationship management (CRM) technology.

Castle Radio will include personal interviews with adult performers and live feeds from in-store signings. Castle has held more than 100 signings with performers including Jenna Jameson, Ron Jeremy, Jesse Jane, Belladonna, Stoya and Tera Patrick. Plans also call for Castle Radio to feature special events like bridal shows and its annual Halloween Fashion Show.

CRM technology will help Castle Megastores analyze customer trends and send customized email communication to help drive sales. Customers also will be able to sign up for a loyalty card that will provide exclusive benefits and discounts to members.

Founded in 1987, Castle Megastore operates 16 stores in Alaska, Arizona, New Mexico, Oregon and Washington. The stores range in size from 5,000 to 15,000 square feet and offer products including novelties, massage oils, personal stimulators, lingerie, sex toys, condoms, videos, books and magazines.

Castle Megastore Group, Inc will continue to operate in its corporate office in Tempe, Ariz.

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 !


Paysite Meetup: Catching Lightning in a Bottle

We just completed the first XBIZ.net Paysite Meetup in Prague. We caught lightning in a bottle. I first heard that expression from a friend who works in TV. He started in TV in the 1960s selling advertising,... More »

Why a Traffic Network Killed a Popular Offering

Change begets change. Nothing propagates so fast. If a man habituated to a narrow circle of cares and pleasures, out of which he seldom travels, step beyond it, though for never so brief a space, his departure... More »

Luring Cam Users With the Right Ad Format

The live cam marketplace is highly competitive filled with big-, medium- and small-sized players. So how do you stand out from the crowd to attract new users or persuade users to come back and spend their... More »
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.

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.


Latin America Adult Business Expo

Jul 10 - Jul 12
Cartagena, Colombia

ANME Founders Show

Jul 16 - Jul 18
Los Angeles Marriott Burbank Airport


Aug 03 - Aug 06
Montreal, Quebec

XBIZ Berlin 2017

Sep 11 - Sep 14
Berlin, Germany
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!