US's largest gay publisher files bankruptcy, locks out employees

November 16, 6:43 PMInternational LGBT Issues ExaminerKelvin Lynch

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An unidentified former employee of Window Media leaves a note on the company's headquarters

AP Photo

The nation's largest publisher of LGBT newspapers and magazines, including the 40-year old Washington Blade, went out of business today.  Six other large LGBT publications were also shut down - Atlanta's Southern Voice and David, the Houston Voice, 411 Magazine, South Florida Blade, and the New York Blade.

According to Gawker and several other media outlets, employees at the publications were given no warning, and arrived at work this morning to find that the locks had been changed on the building.  There was a note on the door that read, "It is with GREAT regret that we must inform you that effective immediately, the operations of Window Media, LLC and Unite Media, LLC have closed down." 

Apparently, employees were told to return to work Wednesday with boxes to collect their personal belongings.

Window Media has been in financial trouble for some time.  Towleroad reported this past February that the company's majority shareholder, a private equity fund called Avalon, had been placed in receivership by the Small Business Administration because it was severely undercapitalized.   Avalon had borrowed $38 million from the SBA and clearly lacked the assets to pay back the loan. 

Window Media is reportedly filing Chapter 7 bankruptcy, which would help explain the abrupt closures.  But if they knew they were in dire financial trouble for all these months, couldn't they have done something to prepare their employees for today, instead of the cowardly, undignified act of just locking them out?  There is definitely something amiss here.

The State spoke with former Southern Voice editor Laura Douglas-Brown, who said, "From my understanding, there was just no more money to keep these companies running.  We had all been told that the companies would be sold. The fact that we were shut down was a complete shock."

Gawker said that the locked-out employees in Atlanta this morning were huddled in the company's parking lot, not sure what to do with themselves, and fielding questions from reporters who had learned of the closures. 

So far, nobody from Window Media is talking.  Co-president Steven Myers declined comment, but said he would be able to talk about this closures later this week.

But it's the death of the pioneering Washington Blade, which was considered the New York Times of gay newspapers, that really stings, especially coming on top of the demise of the nation's pioneering gay magazine, The Advocate, which has now been reduced to a newsletter tucked inside gay fashion magazine Out. 

In a sad blip of a farewell, the Washington Blade tweeted this morning, "Washington Blade, like all Window Media publications, is closing today. Thank you for your support. (Keep following us for developments.)"  Later, they posted this update on Twitter, which said, "The Blade staff is united and ready to continue the paper's long-standing mission. The first meeting for our new venture is Tuesday and we welcome the community's input as we move forward."

More to come on this story as it unfolds.

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