GLBT publishing company goes belly up
Donna Gimbut, principal owner of Living Out Media Group and Three Dollar Bill, has filed for federal bankruptcy protection. The Minneapolis-based companies published gay and lesbian service directories in at least six cities around the country, as well as Living OUT, a local bi-weekly newspaper.
In August I wrote an article detailing the companies' dubious financial practices. Numerous advertisers, both locally and around the country, alleged that they had paid for advertisements that were never printed. In addition, former employees claimed to be owed hourly wages and sales commissions.
At the time Gimbut was nowhere to be found. She didn't respond to voicemail messages and a trip to the company's offices proved fruitless. Nor did she subsequently respond to the allegations detailed in the article.
The bankruptcy filing, dated October 12th, shows the depths of Gimbut's financial difficulties. According to the court document, she has debts of $342,065 and assets of just $80,367. Among the debts owed are $12,159 to ECM Publishers, of Coon Rapids, $230 to The Minnesota Daily, and $402 to a local Merry Maids franchise. Her largest outstanding bill: $130,000, owed to Moore North American, of San Diego.
Gimbut lists three automobiles as personal property--a 2003 BMW, a 2002 Isuzu Trooper, and a 2002 BMW--but the latter two vehicles have been repossessed. Gimbut's current income is claimed to be just $3,094.
In addition, Gimbut and her businesses have now been sued five times since June in Hennepin County District Court. Two plaintiffs, both former employees, have received default judgments totaling $5,202.50. The other three cases, involving either aggrieved advertisers or former employees, are still pending.
Given Gimbut's perilous financial condition it seems unlikely that any of these folks will ever see a dime.