The stunning news of last week’s bankruptcy filing by Colt’s parent company Prowest Media, as well as that of it’s owners, partners John Rutherford and Tom Settle, put into perspective the impossibility of the Colt deal, and the on-going effects of the Great Recession on the gay porn business. Combine that with the other trend-setting events of the week, and the gay porn business has been rocked like the San Francisco earthquake.

Faced with the imminent trial from the Jim French breech-of-contract lawsuit against Prowest et al, Rutherford and Settle made a last bid effort to try and retain control over their company, get relief from their debts, and give them some hope of salvaging their business. Prowest was placed into Chapter 11 (typically a re-structuring) while Rutherford and Settle filed for Chapter 7 (liquidation).

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