Could the federal Small Business Association shut down Window Media as early as July 31? That’s what we’re hearing is the plan — if the gay media company can’t unload its assets, which include The Washington Blade, The Southern Voice, Express Gay News, David, Houston Voice, The South Florida Blade and 411 Magazine (Window’s The New York Blade closed last month; it has/had a stake in HX, which is being sold to Next.)
The SBA, which lent some $38 million to Window publisher David Unger’s Avalon Equity Fund to invest in gay media, is also looking into what happened to the major cash it lent in his direction, which according to a source was “diverted” into Genre — which then folded. SBA wants to know where the money is.
Recall that we already heard Unger was trying to unload Window’s titles; then Unger was kicked out by SBA (or “resigned,” as he insists). Unger’s name has already been removed from Window’s management profiles.
This SBA-mandated deadline is very problematic since we’re hearing nobody has expressed any serious interest in Window’s publications. And then there are the rumors that Unger (pictured, right) himself is being looked into for possible criminal allegations if he can’t explain the money trail.
Then again, as Queerty has proven before, sometimes “rumors” is just a coy term for “what will eventually happen.”
All this reminds of us of what a reader pointed out to us earlier this summer: The South Florida Blade was advertising office space for lease. It’s own office space. The address where there’s square footage available is the same address as the SoFlo Blade and 411‘s offices; interested parties were asked to contact the the rags for details. Yes, the Window titles are looking to sublet their space — which means the Blade snapped up more space than it needed, or it can’t afford its current lease (or knows it won’t need it moving forward). (They don’t own the building, but they do lease space there.)
We reached out to Window COO Michael Kitchens and CFO Steve Myers (both are acting co-presidents) for comment; we’ll update as needed.