E-mail updates
Follow on Twitter
Subscribe to RSS
In another black eye for Newt Gingrich, the flagship of what's known in Washington as "Newt Inc." has filed for bankruptcy.
In a Chapter 7 filing in the U.S. Bankruptcy Court, Northern District of Georgia, The Gingrich Group LLC, doing business as the Center for Health Transformation, filed for bankruptcy Wednesday. (Chapter 7 is "the chapter of the Bankruptcy Code providing for 'liquidation,' that is, the sale of a debtor's nonexempt property and the distribution of the proceeds to creditors," as defined by the federal courts.)
The vast majority of Gingrich's net worth is tied up in the Gingrich Group. Gingrich is worth overall between $7.1 million and $31 million, according to his financial disclosure. He lists a promissory note from Gingrich Group as being worth between $5 million and $25 million.
Rogelio Solis / AP
Republican presidential candidate Newt Gingrich speaks at the Gulf Coast Energy Summit in Biloxi, Miss.
Gingrich was chairman of the group until May of last year, when he announced he was running for president. Since the candidate turned focus toward his presidential run, the Gingrich Group has struggled to raise money, leading to its eventual collapse.
The bankruptcy comes at a time when Gingrich's campaign is struggling to regain any momentum. He has won only two states during his run for president -- South Carolina and Georgia, his home state -- and he lags far behind front-runner Mitt Romney in the delegate count, in third place with just 137 out of the 1,144 needed to become the nominee.
Mitt Romney has half the delegates he'll need to secure the GOP nomination, but Newt Gingrich refuses to leave the race. The Washington Post's Karen Tumulty discusses.
Though he continues to pledge that he's "going to Tampa," the site of the Republican National Convention this summer, Gingrich is sounding increasingly like a candidate fighting for relevance rather than the presidency.
(Here are the bankruptcy filings - Part 1, Part 2.)
The news of the bankruptcy was first reported by the Atlanta Business Chronicle and confirmed by NBC News with the court in Atlanta and a federal court database search.
Gingrich pulled in $2.5 million -- the bulk of his income -- from January 2010 to August 2011 from sister organizations Gingrich Productions and Gingrich Communications.
On the campaign trail, Gingrich has touted ideas coming from his health think tank. And it has been a source of controversy, as questions were raised -- and other campaigns questioned - whether Gingrich acted as a lobbyist on behalf of the group in Georgia.
The Washington Post wrote: “[H]is time there exemplifies the former Georgia congressman’s post-legislative career as a well-paid consultant and policy guru, a role that earned him and his companies tens of millions of dollars over the past decade.”
NBC's Kathy Johnson and Marcie Rickun contributed to this report.
Leave a Comment:
Well another example of Borrow and Spend Republicans, just like his Speakership that added trillions to the national Debt. Tell him to go to Tiffany's, they give rich folks credit.
If he goes to Tiffanys, they'll want all of Calypsos jewelry back.
Hmmm he'll come and say someone stole it
God's revenge on Newt wanting to take health care away from children & the needy,,,, They are the inheritors of the Kingdom of Heaven, or so the story goes
God doesn't like his 6 year old children cleaning toilets.
Whoa, whoa, whoa. Wait.
Newt is still considered a candidate?
Why not? After all of his failures with women, he still calls himself a man, does he not?
Bain Capital in a leveraged buyout, a health care company going bankrupt asks for government bailout, so why not a stimulus package.
So why can't he and his employees "get rid of the unionized janitors, and pay themsleves to clean up" the organization? "It's tragic what we do" with white collar workers, "entrapping them" in desk-bound positions "which are truly stupid." It seems that "really rich people, in really entitled environments, have no habits of working and have nobody around them who does real work."
Newt: Shoe. Mouth. In your (other) face, you hypocrite!
Newt's a loser.
It shows that this evil Newtster is not even able to manage a company. Perhaps he should call Mitt in to break his company up,. after all Mitt has nothing to do from fall.,
Good
Think tank, huh? I guess they couldn't think their way out of financial trouble.
Newt Gingrupt --- The new name has a certain ring to it that pleases the ear, doesn't it?
The woman looks like from Mars Attack, so she need a lot of blink to cover
Oh that was precious! I am still laughing! Thanks! ;-)
Should stop the wife from shopping at Tiffany's!
I have this vision of Newt sobbing on his knee's begging Calista not to dump his loser @zz
I woner how much money is in off shore accounts in other names to protect the rich
I can't wait to hear newt try to spin this!
Yep, he'll try to tie it into Ronald Reagan somehow
Nope he'll blame Obama:
another Repuick (aka Re PUBIC) being irresponsible (Obamma's FAULT) and NOT paying his debts to those who counted on getting money that they will never see again. And he wants to run the gov't HHHAHAAAHHAHAHAHHAHAHAHAHAHAHA
Ahhh the truth comes out about the a$$hole that would be president!....a legend in his own mind!
I can't even believe this. I mean that sort of thing is typically what defines who runs for president and who doesn't. You don't run for president if you know your main company is going under and needs to file bankruptcy. The fact he was powerless to prevent his company from filing, and that the LLC filed for complete liquidation and not reorganization, means this guy has lost touch with reality.
Bet Callista is pissed! What in the world will she do without a couple of million in jewelry from Tiffany's and all the Paris spring fashions?
After being morally bankrupt all his life, the progression to financial bankruptcy is fitting Karma!
My cynical side thinks the salamander only ran for president because he saw the writing on the wall regarding bankruptcy. The sooner he goes away the better.
OH Dear whatever will Calista do, and just when she was planning a big binge spending spree at Tiffanys too!!
No more hair-helmet dye - I cannot wait to see what happens.
Newt Gingrupt failed to take the our advice of staying out of politics.... Next? Romney, who's problems make Newt look like a school boy
OBAMA -- BIDEN 2012 TAKING AMERICA FORWARD
His plan for $2.50 gas was to tank the economy so demand drops to record lows....
ha ha ha ha ha ha ha ha ha ha
Sounds like Nancy Palosi was right..."he'll never be President".
This guy will never be anything but the answer to a trivia question.
good i hope this firm and this @!$%# lose everything andhim and his whole useless family bloodline wind up on the streets and either freeze to death or starve to death
nice wishes for someone's family, and you liberals call conservatives haters!!!
bigredmch, after the rape that "conservatives" have perpetrated on this country, I think it wise that you not be critical.
bigredmch, we weren't the ones shouting "Let him die!" regarding a man who actually works for a living at that debate.