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.