Nation's Largest Gay Newspaper Closes

[josephga]

ATLANTA -- The nation's largest publisher of newspapers serving the gay and lesbian community has shut down and plans to file for Chapter 7 bankruptcy.

 

Employees arrived at work Monday morning to find out about the sudden end to the newspapers owned by Window Media LLC. At Southern Voice newspaper in Atlanta, editor Laura Douglas-Brown said the locks were changed at her office and a note was posted on the door.

 

She said the company's other publications -- including the Washington Blade, Atlanta david, Houston Voice and South Florida Blade -- were also being closed.

 

"From my understanding, there was just no more money to keep these companies running," she said in a telephone interview Monday as she sat with her former employees outside their locked Atlanta office. "We had all been told that the companies would be sold. The fact that we were shut down was a complete shock."

 

The company's financial trouble stemmed from a number of factors. Besides an industrywide drop in advertising revenue amid the economic meltdown, mainstream publications are writing more about gay and lesbian issues, reducing dependency on niche publications such as Window Media's.

 

"Window Media long provided a very special outlet for the gay community to learn about itself way before there were a lot of other places to find that type of thing," said Michael Musto, an openly gay writer for the Village Voice in New York, which is owned by Village Voice Media Holdings. "This was the gay community writing about itself, and that's a voice we should never lose."

 

Steven Myers, co-president of Window Media in Washington, D.C., declined comment.

 

He said he'd be able to talk more about the closures later this week.

 

Few details were available on the planned Chapter 7 filing. Unlike Chapter 11 bankruptcy cases, which protect companies from creditors as they reorganize and continue to operate, Chapter 7 involves shutting down and liquidating assets.

 

The company had been struggling financially since last year. The company's majority stockholder, New York City-based Avalon Equity Partners, was taken over by the U.S. Small Business Administration in August 2008, administration spokesman Dennis Byrne said. He said the SBA does not expect to recover the $7 million that Avalon invested in Window Media.

 

Avalon owner David Unger said he was "not involved any more," then hung up the phone abruptly.

 

Just last month, the Washington Blade, the oldest newspaper in the U.S. for gays and lesbians with a circulation of 30,000, celebrated its 40th anniversary. Former editor Kevin Naff said he was greeted Monday morning by Window Media corporate employees who told him of the company's demise.

[Guest novabear22031]

Very sad day yesterday here in DC. The Washington Blade had just celebrated their 40th anniversary last month. According to the Washington Post, The Blade despite the down turn in advertising, was still profitable. Also mentioned was the fact a group of employees are thinking about starting a new GLBT paper.

[Guest PWIT]

According to the Post "The financial problems of Window Media, the parent company of the Washington Blade, had been known for a while -- so much so that the 20 staffers of the weekly newspaper put in a bid to buy the publication last summer. No action was taken."

 

Wonder why they parent company did not sale it off if they were having money issues?

[+ ArVaGuy]

According to the Post "The financial problems of Window Media, the parent company of the Washington Blade, had been known for a while -- so much so that the 20 staffers of the weekly newspaper put in a bid to buy the publication last summer. No action was taken."

 

Wonder why they parent company did not sale it off if they were having money issues?

 

Not only did the staff try to buy the paper, a local publisher submitted a bid a few months ago. The owner of the Falls Church News-Press has stated his bid was ignored by the Blade's holding company.

 

The holding company has been in trouble with the Small Business Administration regarding loans and various business practices. The strategy of going straight to Chapter 7 liquidation seems strange to me. The rest of this story is going to be very intersting.

 

The Washington Post has issued an editorial about this which is unusual. The Post refers to The Blade as the newspaper of record for gay issues. Further WaPo has called for the protection of the paper's archives. It would be a massive historical loss to the gay community if those archives are no longer available.

[KMEM]

AvG-

 

I take your commentary seriously but I could not help but be amused by your phrase, " straight to chapter 7" as being a strategy that is contrary to every thing the paper regards as sacred. Here I mean only the actual words used, not the sentiment.

 

Best regards,

KMEM

[+ ArVaGuy]

Well....going straight seems counterintutive in this situation. :D:D

 

AvG-

 

I take your commentary seriously but I could not help but be amused by your phrase, " straight to chapter 7" as being a strategy that is contrary to every thing the paper regards as sacred. Here I mean only the actual words used, not the sentiment.

 

Best regards,

KMEM

[+ ArVaGuy]

The Blade Staff forms New Venture

 

Here's an article from the Washington Post by former Blade editor Kevin Naff. He makes the point of how important the paper has been over the years and outlines future plans. The staff has formed a new online presence and seeks donations to maintain the venture.

 

http://voices.washingtonpost.com/local-opinions/2009/11/why_we_need_the_washington_bla.html#more

 

http://www.savetheblade.com/