Apparently, they at least tried. With Avalon Equity, the majority stakeholder in Blade publisher Window Media (and a secondary umbrella group called Unite), in the hands of the Small Business Association, it was the federal government in charge of figuring out what to do with the publisher’s assets as the company’s financials turned worse. But could SBA have unloaded the papers on to a willing buyer?
Perhaps, though it’s unclear why nothing happened — and instead Window closed up shop. Duncan Osborne reports: “Chris Cash, a former owner of the Southern Voice who sold the paper to Window Media in 1996, told Gay City News that she contacted the SBA about the possibility of buying back that newspaper earlier this year after learning the agency had forced Avalon into receivership. She was referred to an attorney at Gottesman, Wolgel. ‘He took my cell phone number, my physical address, my email address, and told me he would send me something,’ Cash said. ‘I never received anything… He did say at that time that it surprised him that he had interested investors.'”
But maybe SBA simply thought that even if there were interested purchasers, nobody was willing to assume the debt load: “Window had $2.6 million outstanding on two loans. The SBA had $2.3 million in equity, or just over 75 percent of the equity, in Window. Unite had an unpaid loan for $235,000 and SBA had $2.4 million in equity invested in Unite, or just over 90 percent of the equity.”
Was Cash willing to assume the debt? Gay City News‘s report doesn’t say, but any wise financial adviser with any familiarity with today’s gay media climate would tell you: If you’ve got $2.6 million just to take on debt, that cash would be better served, say, starting your own gay blog.