The Broke and the Beautiful: Octuplet Edition

This week on The Broke and the Beautiful, “Octomom” Nadya Suleman hatches a Chapter 7 bankruptcy petition, and Sonya Dakar has taken both her skincare company and herself to bankruptcy court. Also this week, the Los Angeles Dodgers sale is complete.

“Octomom” Nadya Suleman has a new addition this week, but it’s not another child. As Bankruptcy Beat reported, the mother of 14 children on Monday added a Chapter 7 petition to her ranks. Suleman, 36, filed for bankruptcy the week she could have gotten evicted by her landlord, who’s said Suleman hasn’t paid rent in nearly a year. Time magazine’s Moneyland looks into what Chapter 7 entails and whether it was the smartest choice for Suleman to make.

According to court documents, Suleman reported assets of less than $50,000 and debts of $500,000 to $1 million. Forbes noted Tuesday that Suleman said she’d do anything to help her family, even reversing her stance on pornography. “You know if the opportunity comes up, I’ll be the first to admit, I’m gonna eat my words,” she said. “Because all that matters is that I can take care of my family.”

It’s certainly a family affair this week for Sonya Dakar. Not only did the skincare maven’s clinic, which has primped and pampered stars such as Drew Barrymore and Gwyneth Paltrow, file for bankruptcy protection this week. But a day later, Dakar also filed a Chapter 11 petition. Bankruptcy Beat noted that the success of Dakar’s spa and skincare line has left Dakar’s family entangled in legal battles that have pitted Sonya Dakar and three of her children against Dakar’s estranged husband, Israel, and one of her sons. Sonya D. International Inc. listed debts of between $500,000 and $1 million but assets of only $100,000 to $500,000. Dakar herself reported assets of between $10 million and $50 million and debts of $1 million to $10 million.

Actor and 2012 Academy Awards host Billy Crystal won’t be able to shine the spotlight on the “Chapter 11 theater” anymore. We mentioned in March that Dolby Laboratories Inc. was looking star in a new role at the Oscars venue, and according to The Wall Street Journal, Dolby is doing just that. The next Academy Awards will held at the Dolby Theatre, after Dolby beat out 10 other bidders for the naming rights to the former Kodak Theatre. But all of that glory will cost it a pretty penny; according to property owner CIM Group, the audio company will be paying a price that’s “substantially above” Kodak’s $4 million a year.

It’s been a while since we’ve blogged about David Bergstein, but the film financier caught our eye this week after he accused his former lawyers of malpractice. According to the Palm Beach Daily Business Review (registration required), Bergstein recently sued law firms Stroock & Stroock & Lavan and Levene Neale Bender Yoo & Brill for $100 million. The Hollywood Reporter noted that former Bergstein partner Ron Tutor also picked up where Bergstein’s suit—which alleges the firms aided and abetted a breach of fiduciary duty—left off.  This isn’t the first time Bergstein’s sued his ex-lawyers, though—the former head of production companies including ThinkFilm Inc. and Capitol Films LLC previously sued Susan Tregub and Teri Zimon, lawyers who were in-house counsel at his companies.

Prince Sports Inc. is making a racket—in bankruptcy court, that is. According to WSJ, the maker of rackets for tennis legends including Jimmy Connors and Martina Navratilova served up a Chapter 11 petition this week. Prince is set to be acquired by Authentic Brands Group LLC, which recently bought the company’s debt. Prince, which is $65 million in debt to Authentic and $12 million in debt to vendors and other parties, blamed its financial problems on more competition and the economic downtown.

Broke has been there for the Los Angeles Dodgers in good times and in bad times. This week, the Dodgers have hit a homer with the completion of a sale to a group led by former basketball star Magic Johnson. Daily Bankruptcy Review reported that Guggenheim Baseball Management LLC closed the $2 billion sale, ending a few rough innings for the team that filed for bankruptcy protection last June. The Dodgers, who are leading Major League Baseball’s National League in the standings, can now strike Chapter 11 from their roster.

One more strike and Mickey Mantle’s restaurant could be out on its cleats. According to the New York Post, the restaurant named after the New York Yankees legend needs to raise money to avoid an eviction from its spot in Central Park South. “They want to get rid of us at the end of May,” said owner Chris Villano, who placed the restaurant into bankruptcy protection a few months ago. When it opened in 1987, the restaurant’s rent was $250,000 a year. Now it’s $850,000, friend Bill Liederman said.“We need $1 million to get it back on its feet,” said Liederman, who’s also sought help from former Yankees players.

Deuce McAllister no longer needs a referee to break up the fight involving a lawsuit over his failed Mississippi car dealership. That’s because the former New Orleans Saints running back reached a deal with Nissan Motor Acceptance Corp., the Associated Press reported. Nissan Motor sued McAllister and his dealership for more than $1.5 million in October 2009, alleging the dealership defaulted on payments and exceeded credit limits. The Jackson, Miss., dealership operated in Chapter 11 when it filed for bankruptcy in early 2009 before changing to Chapter 7 liquidation.