March 07, 2003

More on Red Herring's death (and possible re-birth)

Lawrence Aragon, a former Red Herring staffer reports in his Private Equity Week column that Chris Alden, co-founder and onetime CEO of Red Herring and former Editor-in-Chief Tony Perkins are among the bidders for Red Herring's assets.

Also, according to Aragon this is what actually killed Red Herring:

Red Herring has been struggling for several years, after living large during the dot-com boom. At its peak in 2000, it employed more than 300 people and ran three businesses: the print magazine, a Web site with a staff in excess of 30 people, and an events department. To accommodate such a large staff, it leased two offices in San Francisco and one in New York. The pricey leases proved to be its undoing: When the bubble burst, the magazine cut its staff several times, but it still had to make large lease payments. Finally, last October, the company went through a reorganization known as an ABC (assignment for the benefit of creditors), and Broadview bought all of the assets, renaming the company RHC Media. That allowed RHC to get out of its onerous leases. It appeared to be hanging on, but once word leaked that Broadview had hired DeSilva & Phillips to sell the assets, advertisers grew skittish and Broadview pulled the plug.

Click Here to read the full Private Equity Week article