Jill Kelly Productions Inc., a prominent San Fernando Valley adult filmmaker, filed for Chapter 11 bankruptcy protection in Los Angeles in August 2005. The filing occurred as a creditor was preparing to foreclose on the company's property and seize its extensive film library.

Bankruptcy Details and Financial State

The North Hollywood-based company, named for adult actress Jill Kelly, listed approximately 85 creditors and liabilities exceeding $3 million. Its assets were valued between $1.5 million and $3 million. Major creditors included film company Nasty Pixx, American Express Co., and AVN Publications Inc.

Philip Starr, who became Chief Executive a month prior to the filing, stated that the company had "no alternative but to file to protect the assets of the corporation." Starr attributed the company's financial difficulties to mismanagement over the preceding two years, resulting in consistent losses. He succeeded ex-CEO Robert Friedland. Starr also mentioned a federal grand jury inquiry in New York concerning the company, but did not provide further details.

The Chapter 11 action was initiated by a subsidiary of Jill Kelly Productions Holding Inc., which is publicly traded and did not file for bankruptcy itself.

Jill Kelly's Departure and Career

Jill Kelly, whose real name is Adrianne D. Moore, served as president of Jill Kelly Productions Inc. She quit the company in 2005 due to a pay dispute, according to Philip Starr. A Securities and Exchange Commission filing by the company indicated that Kelly had been active in the adult industry for over 10 years, starring in more than 200 adult films.

Kelly is recognized for her work in adult entertainment, having appeared in over 50 mainstream B movies, including Big Sister 2000, He Got Game, and The Legend of the Roller Blase Seven. She was inducted into the AVN Hall of Fame, an honor reserved for adult film stars with a minimum of 10 years in the industry. Her career began as a stripper at the Babydolls theater, where she used false identification as a teenager to secure employment. She later participated in live pornography shows in San Francisco before transitioning to adult films. Beyond acting, Kelly has also produced and directed pornography films.

Despite the bankruptcy filing in 2005, Penthouse acquired the assets of Jill Kelly Productions, reportedly for millions. Kelly has been married three times, divorced twice, and lost one husband to suicide. She identifies as bisexual and had an exclusive relationship with actress P.J. Sparxx.

Allegations Against Former CFO

In July 2007, a legal dispute emerged involving Jill Kelly and Ronald Craig Stone, the former chief financial officer of Jill Kelly Productions. Kelly accused Stone of misappropriating funds and driving her company into bankruptcy. Stone was terminated after the company's August 2005 bankruptcy filing and subsequently joined Ronco Corp., a Simi Valley, Calif., gadget-maker that itself sought bankruptcy protection in June 2007, owing creditors approximately $32.7 million.

Richard Allen, a former Ronco chief executive and shareholder, argued in court papers that Stone's $400,000 salary at Ronco should be withheld pending a "full investigation" into the misappropriation claims and other allegations of misconduct, including insider trading at Ronco.

Key Facts

  • Jill Kelly Productions Inc. filed for Chapter 11 bankruptcy protection in Los Angeles in August 2005.
  • The company listed over $3 million in liabilities and assets between $1.5 million and $3 million.
  • Jill Kelly, the company's namesake and former president, quit due to a pay dispute in 2005.
  • Philip Starr, CEO at the time of filing, cited mismanagement over two years as a cause for financial losses.
  • Penthouse acquired the assets of Jill Kelly Productions after the bankruptcy filing.
  • Jill Kelly accused former CFO Ronald Craig Stone of misappropriating funds and causing the company's bankruptcy.