New TSR declares bankruptcy, pausing legal fight with Wizards

Lawsuits pending between Dungeons & Dragons publisher Wizards of the Coast and a newly formed TSR are on pause as of June 12. That’s because TSR has filed for chapter 7 bankruptcy — that is the liquidation of the company’s property. Such a filing triggers an automatic “stay,” which is a pause on any other legal proceedings involving the company. Nevertheless, TSR’s website remains online and the company appears to be accepting orders for its products. Polygon has reached out to TSR’s bankruptcy lawyer for comment.

TSR is a company founded by Gary Gygax & Don Kaye in 1973. Wizards of the Coast purchased the company in 1997. Justin LaNasa from North Carolina is the new owner of TSR. He’s best known for a chain of tattoo parlors — and also for a failed political campaign complicated by reports that he once asked several female employees to wrestle in a tub filled with warm grits.

Wizards of the Coast was sued by the newly formed TSR in December of 2021. The suit claimed that Wizards of the Coast abandoned several trademarks, copyrights and other rights after purchasing TSR. Wizards countersues TSR, LaNasa personally and others for trademark infringement and cybersquatting.

In September, Wizards made the unusual request that a judge prevent TSR from publishing a role-playing game that it said was, in addition to being based on trademarks in dispute, filled with “blatantly racist and transphobic” content.

The documents filed in North Carolina portray a dire picture of TSR. The documents show that TSR’s gross revenue was only $621.93 for the 23 first weeks of this year. Total liabilities — which include money owed to LaNasa himself, as well as another of his businesses, plus legal fees — total $384,941.99.

The trial dates for both cases were originally scheduled to be held in October. However, a U.S. District Court judge in Seattle has postponed the date until March 2024. It’s unclear if that date will be moved once again when the bankruptcy proceedings are completed and the automatic stay is lifted.