Late last night QN Magazine published a story announcing the sale of Sydney’s Star Observer LGBTIQ newspaper. The story was premature.
QN Magazine took the story from a news site from an established Sydney publisher.
The press release stated that, after the purchase of the Star Observer, the publication would move into his offices and continue publishing from there.
Early this morning we learned that negotiations for the sale of Star Observer are actually ongoing.
We took down the story immediately after learning it was inaccurate.
An outcome is expected soon from the negotiations.
The Story has appeared in the latest issue of the Sydney publication.
Due to celebrate their 40th year, Star Observer ran into financial difficulty and went into voluntary administration last month.
Previously, Gay & Lesbian Community Publishing Limited, former publishers of the Star Observer, appointed Trent McMillen from MaC Insolvency as administrator on Friday, 10 May.
Later, on 16 May, the board of directors made an announcement of the appointment.
At the time, Star Observer chairman, Sebastian Rice, attributed the downfall to cash flow issues.
The LGBTIQ community-owned not-for-profit relied on revenues from advertising.
As a result of an unforeseen slowdown in advertising clients paying their bills, the organisation experienced cash flow problems.
Subsequently, the Star Observer ran low on cash for operating and wages expenses.
Despite a readership of more than 120,000, the paper also faced a financial crisis in 2014. At that time, a crowd-funding campaign that exceeded its target by $25,000, raised over $100,000 to keep the publication going.
QN Magazine and QNews publisher Richard Bakker said the team QNews and QN look forward to a successful outcome to the negotiations.
“We congratulate the successful bidder.
“We applaud their commitment to maintaining a queer voice in NSW.
“Strong LGBTIQ media is essential for both informing and giving our communities a voice.”
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