Why was Blade publisher Window Media shut down last week? Maybe because it was carrying $15.35 million in debt it never had a chance of paying off.
As Queerty was the first to report back in March, Window — then headed by Avalon Equity's David Unger — has been suffering huge cash flow problems, unable to pay staff and freelancers, vendors or landlords, or its taxes. (Many employees reportedly didn't receive their last paycheck.) The damage of which was revealed Friday when the Small Business Administration had Window and sister Unite Media file for Chapter 7 bankruptcy protection. Among the remains, reports Project Q::
Window lists claims of nearly $7.85 million to 277 secured and unsecured creditors, while Unite’s claims include $7.5 million to 126 creditors. Combined, the companies owe $1.04 million in payroll and other taxes to federal, state and local agencies; $418,189 to printers in several states; $168,109 in rent in Atlanta, Fort Lauderdale and Washington, D.C.; $71,798 to distributors of the former publications; and $4,500 to two companies providing health insurance.
We won't bore you with the bankruptcy filing details, but Avalon Equity and M&T Bank are first in line to receive funds as Window and Unite's creditors. It'll be an uphill, if impossible battle for neglected employees and contractors to recover any due funds, given what's left of the companies — the brands and their archives — appear to have been entirely abandoned. That's too bad.
But it does explain the string of problems we've told you about, from the closure of Genre to Unger's unceremonious departure from the company.
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Hmmm maybe HX should have filed for bankruptcy as Avalon owed them about $100-200K in past bills and rent when they shared the same offices.
A little Googling on Window Media's creation will yield articles about original investors suing because they said they ere unable to even look at the books, default on payments to the people from whom they'd bought the darned papers in the first place (the real heroes of these papers, their creators and previous owners), lapsed health insurance payments (kind of important when someone gets rejected at the CVS for the meds they need to stay alive), default on the bank loan…
…and that was in the first year or so after they bought Washington Blade.
So these guys Unger, Crain and Waybourn thought they could handle more debt and more publications over the following years?
Well, I am sure the executives got paid! And Avalon wont be getting any money, they are in receivership as well. The money goes to the government.
Ok, you guys love this story (and any other story about the demise of print media) a little too much. Queerty's fun to read, but websites like this one won't replace reported stories produced in some of the magazines and newspapers that are folding.
Uh, excuse us, Clark, but which of the "magazines and newspapers that are folding" first reported Unger's ouster, Window's serious meltdown and imminent demise? None, Queerty did. Which one of your mags or newspapers reported the bankruptcy documents? None, Project Q in Atlanta did.
You seem to be accusing Queerty (and Project Q Atlanta by association, one assumes) of loving a particular hard news story too much. But you want more news like good old mags and newspapers used to bring. But when Queerty brings it, you want them to stop?
Go figure that one out for us, pls.
How did Kitchens and Myers get stuck holding the bag in all of this? Whatever happened to Bill Kapfer, Marketing co-President, and David Unger, da man? Do they just move on and Kitchens/Myers are screwed? I'm missing this part. Anybody want to enlighten me?