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

NEWS STORY

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
  39.66%
Yes, but in a few years
  36.87%
No
  23.46%
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 !

BUSINESS ANALYSIS

Fierce Competition Breeds Cam Studio Excellence

A combination of elegance and engineering, cam studios operate in a highly competitive environment where slim margins must be maximized through innovation and careful management. XBIZ recently asked a... More »

Quality Network Partners Bolster Cam Studio Success

There is a potent dynamic in the cam world between consumers, models, networks and studios, with each playing a vital role in the forging of this erotic ecosystem. One often overlooked factor is the role... More »

Retailers Talk BDSM Shopping Trends

These days, BDSM is so mainstream that it is being depicted in everything from beer commercials to telenovelas. Floggers, paddles, ball gags and handcuffs were once considered the bad boys of adult retail;... 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.
Subscribe to XBIZ Premiere magazine, the industry's leading adult retail trade publications, delivering the most timely and comprehensive business news and information to producers and retailers of adult products.

UPCOMING EVENTS

XBIZ Retreat

May 30 - Jun 03
Miami, Florida

XBIZ Miami 2017

May 30 - Jun 02
Miami, Florida

XShow 18+ 2017

Jun 01 - Jun 03
Moscow, Russia

Cam Summit

Jun 02 - Jun 04
Lloret de Mar, Spain
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!