LGBTI news journal Star Observer has entered voluntary administration due to drying up advertising revenue.
The journal, which has been a staple for the LGBTI community since 1979, was founded by Michael Glynn at a time when gay men were facing violence from police.
Star Observer chairman Sebastian Rice says it faced financial troubles due to advertisers not paying bills on time.
“Cash flow is the lifeblood of any small organisation. The Star Observer is an LGBTI community owned not-for-profit that has always relied on advertising revenue to raise money. We do not receive any government funding,” Rice says.
“The board saw an unexpected slowdown in our advertising clients paying their bills, which caused us to run low on cash in the bank. We needed to enter voluntary administration to protect our creditors and staff, and provide a chance for the Star Observer to survive.
“I want to thank our very dedicated staff and volunteers, who have put in a huge effort over the last few years.”
The journal’s board appointed Trent McMillen from MaC Insolvency as administrator on 10 May, who is looking at options to save the business.
This includes selling the business and proposing a Deed of Company Arrangement, which would be presented to creditors in the next 30 days, to avoid liquidation, and to allow the business to continue to trade and meet its obligations.
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