THE Miss America Pageant has filed for bankruptcy after 103 years as two officials at the top of the company argue over ownership.
Miss America Competition LLC, the company behind the beauty pageant, has been the focus of a court battle this year.
4
4
Robin Fleming who became its president and CEO last year and real-estate developer Glenn Straub both filed claims in court alleging they have sole ownership of the business.
While Straub filed for Chapter 11 Bankruptcy protection on Friday with the bankruptcy court in West Palm Beach, Florida, Fleming filed a document on Monday saying the opposite.
‘BAD FAITH’
Straub claims Miss America Competition LLC is $4 million in debt, but Fleming, the former CEO has slammed the move by the current president as a “bad faith” attempt to get control of the company.
According to the Wall Street Journal, she added that it is not in a state of financial distress and has requested the court to dismiss the case, claiming once again that he does not own the company and therefore cannot file for bankruptcy.
read more on beauty pageants
The former CEO further accused the current chief of attempting to throw the upcoming contest set to begin on January 1, 2025, into jeopardy.
Her court motion stated: “In approximately four weeks, thousands of people will head to Orlando, with hopeful young ladies and their families in attendance from across the country, to fulfil the chance of a lifetime to compete for the title of “Miss America,” a title recognized across America and beyond for more than 100 years.
“The bad-faith bankruptcy filing for MAC orchestrated by Straub is designed solely to prevent the 2025 Miss America Competition from going forward and succeeding.”
But, Straub hit back claiming that the shadow now thrown on the pageant has been caused by Fleming who he claims has refused to turn over financial information and give up control of the company.
In October, Fleming was ordered by a judge to give the new CEO access to the business’s financial documents and other crucial documentation.
She claimed to have purchased Miss America’s assets in December 2022, which Straub claimed in a separate lawsuit that she is inappropriately using for her legal fees.
He reportedly attempted to fire her but the former boss allegedly refused to leave, Straub has claimed.
But in May, the Miss America board voted unanimously to transfer the company’s assets to Fleming, it said in a statement.
The board said this was done “to continue to legacy of the Miss America mission which includes educating and empowering women and supporting organizations that promote and support women in all walks of life.”
Despite the ongoing legal battle, the pageant is set to continue in January, per the court’s ruling.
To further ensure its continuance, Straub informed board members that he would fund the pageant himself if necessary, the WSJ reported.
He stated in his letter: “This reckless practice is putting Miss America in financial and legal jeopardy and I will not allow this to destroy all that you and I have worked so hard to accomplish.
“They have forced me to take this legally proper step to [e]ensure the long-term survival of the organization.”
The Miss America beauty pageant was launched in New Jersey in 1921, making it 103 years old.
Judge Erik P. Kimball will eventually rule on who is the rightful owner of the company.
Fleming has claimed that Straub’s allegations of her misuse of company funds are defamatory.
A hearing will be held by Kimball on Wednesday regarding her request for the Chapter 11 Bankruptcy filing to be dismissed.
4
4
