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Doubledown Files for Bankruptcy

Shuttered publisher seeks protection from creditors.


By Jason Fell
02/26/2009

Doubledown Media, the former publisher of magazines aimed at the Wall Street elite, has filed for bankruptcy protection.

According to a petition filed in a Manhattan court, Doubledown has between $10 million and $50 million in assets and liabilities, Reuters reported Wednesday. Earlier this month, the New York-based company—which published Trader Monthly, Dealmaker, Private Air, Corporate Leader and the Cigar Report—said it was ceasing operations.

Before that, president Randall Lane [pictured] and chairman Jim Dunning—Doublesdown’s primary investor—had been searching desperately for a buyer. According to a letter sent by Lane to investors in December, the company lost $3 million in 2008.

Late last year, Dunning gave Doubledown a $300,000 short-term loan to cover operating expenses—on top of $3.575 million he invested in the second half of 2008. Dunning’s total investment in the company is said to be roughly $8 million.

Legal Troubles

According to court documents, an arbitrator on December 3 awarded Deedee Morrison, the founder of Private Air, $450,000 in salary, as well as payments contingent on "net annual sales revenues." Doubledown filed a countersuit, alleging Morrison defrauded the company over the value of the magazine’s advertising contracts, which was dismissed.

Morrison did not return multiple requests for comment from FOLIO: this week seeking comment.

Earlier this month, Doubledown asked for—and was granted—an extension for the award to be entered into judgment by the court.

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Randall Lane is one of the bad guys
Submitted by Anonymous on Sun, 03/01/2009 - 18:04.

No one has anything good to say about Randall Lane --- especially those of us who worked with him at Doubledown Media. He was, I was told, once a man of integrity and honesty... but from my experience, he is a liar and an egomaniac, who tried to fulfill his own egotistical dreams of being a successful businessman. Perhaps he was a decent editor, but a businessman? Randall Lane drove Doubledown Media into the ground. He insisted on pursuing personal interests (his Napa Valley event, for example), using the company's money, NOT paying his sales people, and worst of all, underestimated how important it was to treat people with respect and honesty. He always believed his ideas were right, though time and time again, they proved to be wrong. He didn't listen to other people. He has no business sense --starting from business vision down to the way he would dress when meeting a potential buyer for his properties. Unprofessional at every level. I'm not alone in the pool of people to whom he owes a lot of money. He used to say that salespeople were expendable -- "let him/her leave, we'll get someone else" were his words, when sales people complained they were owed money and they would not continue to work unless paid. He never truly understood how important sales was to his organization. And certainly never treated salespeople with the respect he should have. I believe that Randall Lane will get what he has coming to him, and that's nothing good. I do hope he loses everything that means anything to him. Does that make me a terrible, vindictive person? I don't think so. Many of my friends at Doubledown are left in terrible situations -- having to sell their houses, wondering how they'll pay for their children's educations, owed lots of money which they'll never see. It's criminal, quite frankly. So my hope is that Randall too loses his house and his assets and has at least as much burden as he has put on the team who worked so hard for him. He did not deserve most of us, that's for sure.
Former Double Down Media employee
Submitted by Dan on Sun, 03/08/2009 - 07:44.

I worked for them from November 2008 till the time the company crashed. My job was to update the website and send out newsletters. I was generating the company revenue, and I was never paid. The last I heard from them was "We will be in touch". It's been about a month and I haven't heard a word from them and I seriously doubt I will. I'm out thousands of dollars (which to me, a kid right out of college) is a "boatload of money" It would have covered my bills for the rest of the year. I spent months of my savings waiting for a paycheck from a company that had a corrupt person at the top. I wish I knew this sooner.
Magazine
Submitted by Max Cohen on Wed, 03/25/2009 - 21:47.

Was asked to work on an alumni publication for U Penn. Turned into a personal self-promotion project for both Dunning and Lane. Both are shady frauds



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