January 12, 2011 | The Biz

COLT settles with Jim French Studios

COLT Studios has agreed to pay Jim French Studios $500,000 in 20 installments in order to settle a long standing dispute between the two companies.

Jim French Studios is owned by former COLT owner and founder Jim French. Seven years ago French sold COLT for $2.2 million, but claimed he never received anywhere near the full amount.

John Rutherford and Thomas Settle, the men who purchased the company in 2003, claimed that after buying the company they “discovered that the existing business and brand was dead, and that the only means to capitalize on the assets purchased was to produce new, contemporary content."

“[COLT] began to run into difficulty when it was discovered that it was not provided all of the images which it had purchased,” court papers said. “Without the images, it was difficult to produce new packaging, magazines and calendars. ... Distributors left the business as did a number of retailers.” 

COLT’s parent, Prowest Media Corp., later filed Chapter 11 bankruptcy. Listed as one of its creditors was Jim French Studios at $1.49 million. The settlement will see that French recovers some of the money he's owed. 

$500,00 is certainly much better than nothing,

COLT to Pay Jim French Studios $500,000 [XBiz]

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