Is Time Out NY in Trouble?

To buy the new issue of Time Out New York, click here.

It certainly looks that way.

Early yesterday, Gawker said there were “rumors” that the magazine is in “financial trouble.”  The site said “the money trouble is a result of bad investment decisions by management.”

Then, Time Out New York sent out this memo to its staff and CONFIRMED THE RUMORS:

To: All TONY Staff
Fr: Alison Tocci

Statement from Time Out New York President Alison Tocci:

As Time Out reaches its 40th anniversary in London, and Time Out New York passes the 13-year mark, there is much to celebrate. Sadly, some of our achievement has been clouded by an anonymous, typo-riddled post on Gossip, I mean, Gawker.com, which alludes to our imminent demise.

I can assure you that rumors of our demise have been greatly exaggerated.

Time Out, like all print media, has felt both the specific downturn in print ad sales as advertisers and readers migrate online, and the general economic downturn complicated by rising paper and printing costs. In addition, we have made significant investment into our own costly transition online.

The result is a tight cash flow situation that has led unfortunately to very slow payment to our vendors and freelancers.

Happily, our New York investors, who understand the value of the brand you have all built and have been entirely supportive over the past 14 years, remain fully committed to us. They have stepped up to the plate in a significant way and I can assure you that our valued vendors, freelancers and all service providers who make what we do possible, will be brought up to date over the next 90 days.

And unlike our anonymous and gossipy friend, you can sign my name to that.

Alison Tocci
President
Time Out New York

Magazines facing financial difficulties in 2008 is nothing new.

But, I have to say, sending out this type of memo is.

On the positive side, it hits the “rumors” head on.

But, at the same time, it seems like this memo was hastily put together and will cause more panic than calm.

I wouldn’t be surprised if quite a few TONY staffers are polishing up their resumes today after reading Alison Tocci’s reassurement.

It’s this paragraph – and specifically the word – “happily” that should and will throw everybody at TONY into a complete tizzy.

Happily,(VERY STRANGE TO USE THIS WORD IN THIS TYPE OF MEMO) our New York investors, who understand the value of the brand (BRAND?  WHEN EXECUTIVES START TALKING ABOUT MAGAZINE BRANDS, THERE’S TROUBLE) you have all built and have been entirely supportive over the past 14 years, remain fully committed to us. They have stepped up to the plate in a significant way and I can assure you that our valued vendors, freelancers and all service providers who make what we do possible, will be brought up to date over the next 90 days. (THIS MEMO WAS SENT TO STAFF.  WHY WOULD THEY ADDRESS FREELANCERS.? IF I’M ON STAFF, I’VE ALREADY SENT MY RESUME TO A HEADHUNTER, FRIENDS, FAMILY, ETC.  THIS COMPLETE ADMITTANCE TO FINANCIAL TROUBLE IS ALL YOU NEED TO HEAR!)