TSR NuTSR Declares Bankruptcy

NuTSR, owned by Justin LaNasa, has filed for Chapter 7 bankruptcy, which will liquidate the company's assets.

NuTSR's gross revenue so far for 2023 is $621.93 according to the documents filed in North Carolina. This is balanced against total liabilities of just over $384,000.

The company made the news over the last couple of years, emerging in 2020 when then-owners Justin LaNasa and Stephen Dinehart registered the defunct TSR trademarks and launched the new venture with the involvement of Ernie Gygax, one of D&D co-creator Gary Gygax's sons. Over the following months, NuTSR generated controversy after controversy, attempted to sue D&D publishers Wizards of the Coast via a crowdfunding effort, and in March 2022 eventually found itself on the receiving end of a lawsuit from them.

TSR - The Full & Glorious History of NuTSR

Because the Saga of TSR3 has been ongoing for a while, with many landmarks, I thought I'd do a quick timeline for those who haven't had the time (or, frankly, inclination) to keep up with the whole palaver. As multiple entities refer to themselves as TSR, I will use the nomenclature (1), (2)...

www.enworld.org

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As a consequence of the bankruptcy petition the current lawsuit between WotC and NuTSR is on hold, postponed until March 2024. NuTSR's website is still active.

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[Umbran]

I'm not really sure WHAT his endgame is here.

Generally, the reason to file a corporate 7 is to announce loudly that you are closing the business. To provide a centralized way to deal with all the creditors circling and trying to get at the money/assets. Usually when the number of lawsuits, their location etc. are just overwhelming.

But here, the LaNassa is by far the biggest creditor, there's really only one suit at issue - and the assets listed are listed as a "net value" of $0. This really doesn't seem to need a chapter 7.

Others have suggested that the point is to claim that he and his other businesses loaned nuTSR money. Since nuTSR has no assets to speak of, in a bankruptcy those loans become unrecoverable losses, and LaNasa could, in theory, write those loans off for tax purposes.

I am not a financial lawyer. Maybe this would have worked if nobody gave a crap about him. Unfortunately for him, I suspect this goes away in the context of litigation that has good reason to look into whether he's been mixing his finances among his operations.

 

[Snarf Zagyg]

Others have suggested that the point is to claim that he and his other businesses loaned nuTSR money. Since nuTSR has no assets to speak of, in a bankruptcy those loans become unrecoverable losses, and LaNasa could, in theory, write those loans off for tax purposes.

I am not a financial lawyer. Maybe this would have worked if nobody gave a crap about him. Unfortunately for him, I suspect this goes away in the context of litigation that has good reason to look into whether he's been mixing his finances among his operations.

The fact that he filed this, showing that he has been comingling assets (literally "loaning" money between entities he completely controls without any business reason to do so) and deliberately undercapitalizing the LLC that is the target of the lawsuit means that, to the extent that WoTC is feeling vindictive and wants to pierce the corporate veil ... well, that is a choice.

 

[Sacrosanct]

I mean, that is what you deserve giving money to shady businesses/persons before you get your products.

I don't feel particularily sad for them.

I don't think it's fair to assume every single customer who bought something from DHSM knew all the bad things he's been doing. That's like saying everyone who backed Far West, or Marmoreal tomb got what they deserved by backing those KS.

 

[DLIMedia]

Mods: Noted. Sorry about that.

 

[Mort]

The nature of this bargain basement saga has me thinking WotC & Hasbro would love to make an example of LaNasa et alia. I wouldn’t be surprised to find out more than one person in the “war room” suggesting:

I would love to see the look on the face of the Head Bankruptcy Partner over at Davis Wright Tremaine, who is used to multi-Billion $ chapter 11s, when he's presented with this penny ante nonsense.

Of course when told the facts, and more importantly that WoTC is covering his billables -he'll smile and get to work.

 

[DLIMedia]

And the fire sale is coming soon!

TSR Hobbies

tsr-hobbies.com

 

[Snarf Zagyg]

And the fire sale is coming soon!

What are they selling? They have no assets....

 

[Raiztt]

And the fire sale is coming soon!

TSR Hobbies

tsr-hobbies.com

View attachment 287703

sale... of what, though?

 

[Cordwainer Fish]

sale... of what, though?

All the stuff they never sent to the people who pre-ordered it, even after they had it on hand?

 

[Jer]

What are they selling? They have no assets....

I was literally just going to ask this - how can they be having a sale when they're going into bankruptcy? I don't get it.