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NE Blade publisher says paper not in trouble by Ethan Jacobs
associate editorThursday Sep 25, 2008 James Patterson, publisher of the New England Blade, said the company remains solvent and is bringing in new investors, contrary to reports that the paper is in dire financial straits.
On Sept. 24 local blogger Sam Baltrusis wrote that an inside source had told him the Blade had been served an eviction notice from its offices at 450 Harrison Avenue in the South End. Baltrusis also alleged that staff had been told to wait to deposit their paychecks, that the company was two months behind on paying its distribution company, and that its parent company, HX Media in New York, had been working to find investors to put money into the company.
Patterson said the Blade’s landlord, GTI Properties, has not sent them an eviction notice.
"No, we haven’t gotten an eviction notice," said Patterson. "We’re at the end of our lease and we’re actually renegotiating. ... Our intention is to stay here but we haven’t completed [negotiations]."
Patterson declined to comment on the claim that some staff were asked not to cash their paychecks, but he said the paper has successfully acquired new investors.
"I really can’t go into detail about individual people’s pay situations. At this time we are currently going through a round of investor financing, which was just recently successfully completed," said Patterson. The Blade is owned by HX in Boston, LLC, which in turn is owned by the New York-based HX Media, publisher of HX magazine and the New York Blade. Patterson said he has found both individual and corporate investors that are investing in HX in Boston, but he said HX Media will continue to have a controlling share of the company. He declined to name those new investors.
Patterson said the crisis in the country’s financial markets has impacted the paper. He said the company does its banking through New York, and he said the the panic on Wall Street temporarily reduced the liquidity of their funds, delaying their payments to their distributor. Patterson said the company has paid the distributor and
the Blade will be on the stands tomorrow.
"Things are tight. I’m not going to kid you," said Patterson."What’s happening in the country’s financial markets is very much affecting us. We’re still very much solvent ... but things are tight."
The New England Blade, formerly known as In News Weekly, is owned by the New York-based HX Media. One of HX’s other satellite publications, HX Philadelphia, folded this past March.
Ethan Jacobs can be reached at ejacobs@baywindows.com
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