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Infowars Parent Reports Product Sales ‘Surge’ Amid Ch. 11 (1)

Aug. 11, 2022, 5:26 PMUpdated: Aug. 11, 2022, 7:18 PM

Infowars’ parent company has asked a bankruptcy court for more flexibility in its budget amid a “surge” in product sales that the business said could climb to $450,000 per day.

The bankrupt production company of right-wing radio host Alex Jones, Free Speech Systems LLC, is facing a “crisis” in being able to fulfill product sales from its website and needs a larger budget to meet associated costs, the debtor said in an emergency motion filed Thursday in the Texas bankruptcy court.

Free Speech wants the ability to allow its credit card processor to remit more money to its fulfillment logistics company, Blue Ascension LLC, to meet increased costs, it said.

Much of Free Speech’s revenue comes from selling nutritional supplements, it’s previously said. It won temporary authority to spend cash on Aug. 3.

The sales boost comes as Free Speech will likely face calls in its bankruptcy for greater scrutiny of its finances after a high-profile Texas trial ended last week with orders for the conspiracy theorist and Free Speech to pay nearly $50 million in damages.

The jury awarded parents Neil Heslin and Scarlett Lewis the damages years after Jones alleged that the 2012 massacre in Newtown, Conn., was fabricated. Their 6-year-old, Jesse Lewis, was killed in the shooting.

Free Speech’s weekly revenues were projected at roughly $595,000 in recent court documents. But the company’s chief restructuring officer now says its sales could reach as much as $450,000 per day, according to Thursday’s filing.

The company’s actual sales have gone over projections for several reasons, including the addition of new inventory, the filing said. Sales revenue in the first week after its bankruptcy filing came in at almost $900,000, the filing said.

“While this is good news on the one hand, it could be catastrophically dangerous if FSS cannot timely fulfill these new orders,” the company said.

The case is Free Speech Systems LLC, Bankr. S.D. Tex., No. 22-60043, motion 8/11/22.

(Story updated with additional context and story links)

To contact the reporter on this story: James Nani in New York at jnani@bloombergindustry.com

To contact the editor responsible for this story: Maria Chutchian at mchutchian@bloombergindustry.com, Melissa B. Robinson at mrobinson@bloomberglaw.com