Australian LGBTIQ publication Star Observer has announced the company has entered voluntary administration and is up for sale.
The publication announced on Thursday the board of directors of the company, Gay & Lesbian Community Publishing Limited, had appointed Trent McMillen from MaC Insolvency as administrator on Friday, May 10.
“Cash flow is the lifeblood of any small organisation,” Star Observer chairman Sebastian Rice said.
“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.
“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.”
Rice thanked the company’s “dedicated staff and volunteers, who have put in a huge effort over the last few years.”
The administrator is currently exploring options to allow the business to continue, the Star Observer said.
Options being considered include a sale of the business or proposing a Deed of Company Arrangement to avoid liquidation to allow the company to continue to trade and meet its obligations.
The Star Observer was originally founded in 1979 under its original title The Sydney Star, and this year celebrated its 40th anniversary.
In February, Western Australian LGBTIQ publication OUTinPerth announced it would stop printing its monthly magazine.
Owner-editors Graeme Watson and Leigh Andrew Hill said at the time they would shift their focus to publishing online on a part-time basis.
QN Magazine | For the latest lesbian, gay, bisexual, transgender, intersex and queer (LGBTIQ) news in Australia, visit qnews.com.au. Check out our latest magazines or find us on Facebook, Twitter, Instagram and YouTube.