According to Newsarama, sources have revealed that beleaguered comics company CrossGen Entertainment, publisher of a host of titles including the recent "El Cazador" and "Kiss Kiss, Bang Bang, has plans to file for chapter 11 bankruptcy protection.
In the past year numerous reports of late payments and often time no payments to staffers and freelancers have surfaced. When the issue of payments first became an issue back in August of 2003, CBR News spoke with CrossGen President Mark Alessi who said payment was coming soon to freelancers, but stories of continued late payments, and in other cases no payment at all, continued.
As time went on more staffers left the company and titles were cancelled. Back on May 3rd Alessi surfaced on the CrossGen message boards and offered the following statement.
Nobody likes to be the bearer of bad news. Nobody likes to make the hard choices. Nobody likes to let down their fans. Yes, CrossGen is struggling through some difficult times. No, we're not dead yet. Not even close. No, I can't give you all the information you'd like to know at this time. Have we had to make the difficult decision to let some titles go? You bet. Have we enjoyed having to trim staff as a result? Not a bit. Do we like seeing loyal staffers become jobless? Of course not! Are we done for? Hell, no! Can we give you all the details of our upcoming transformation? Not without violating agreements we've made with other business entities. I want to thank you all for your support during this difficult transition, and I look forward to the day when we can make the announcements you have all been waiting for.
According to Newsarama, as of today the company has not yet filed for bankruptcy protection in the U.S. Bankruptcy Court. Chapter 11 bankruptcy protection would provide the company the opportunity to continue operation while it reorganizes, allowing more time to pay off creditors. Read their full story here.
Updated 6/21/04 - 8:00 PM - A copy of CrossGen's bankruptcy filing has been obtained by Newsarama. Detailed in the document is the extent of the debt owed by CrossGen, well over $3 Million dollars. Quebecor, the company which prints comics for CrossGen as well as DC and Marvel, accounted for almost $1.5 Million of the outstanding debt. For the full details, click over to the linked article.