Posted by: Jeff Steward
Wankus Helps Puts Black Widow Out of Business - 12/01/06 09:07 AM
This is what happens when your company teams up with Wankus and you start hosting PSK. 
Black Widow Productions Sends Letter to Distributors
By: Eddie Adams
Posted: 6:15 pm PST 11-30-2006
CHATSWORTH, Calif. - Black Widow Productions, LLC has recently sent out a letter to its vendors and producers, suggesting the company has hit some financial hardships and may be going out of business. The company’s President, Richard D. Williams, told AVN.com that if they don’t secure the financial assistance they need, the company may need to shut down next year.
The letter is as follows:
November 13, 2006
To Our Vendors and Producers:
First of all, my apologies for not being accessible recently. We have been going through a very trying time in our history and are focusing on recovering. In the USA we have been facing a severe reduction in DVD sales since last March. We all thought it was just a harder summer than usual (or perhaps we were hoping that was the case), but we are not seeing the traditional rebound in sales that we normally see at this time of the year. If that wasn’t enough, we have also had extreme pressure on our receivables. We have been hit with several bankruptcies by our customers, some very large like Tower Records which hit us for almost $30,000 and also several business failures where there was nothing left to collect. This has severely impacted our cash flow to the point where we have gone below break even and have been funding the operational costs from our savings.
We are currently pursuing financing options to help us weather this downturn in our industry, but if we are unsuccessful we will have no option but to dissolve Black Widow Productions, LLC.
Where this will leave you we are unsure at this point, but we have begun initial talks with our attorneys to assist us in the event that we are unsuccessful in securing financing.
We thank you for hanging in there with us, and it is our sincerest wish to continue operations and pay all of our debts in full. We will advise you as soon as we have something new to report, but we are not expecting to have any news for around 30 days due to the holidays.
Sincerely,
Richard D. Williams
President
Black Widow Productions Sends Letter to Distributors
By: Eddie Adams
Posted: 6:15 pm PST 11-30-2006
CHATSWORTH, Calif. - Black Widow Productions, LLC has recently sent out a letter to its vendors and producers, suggesting the company has hit some financial hardships and may be going out of business. The company’s President, Richard D. Williams, told AVN.com that if they don’t secure the financial assistance they need, the company may need to shut down next year.
The letter is as follows:
November 13, 2006
To Our Vendors and Producers:
First of all, my apologies for not being accessible recently. We have been going through a very trying time in our history and are focusing on recovering. In the USA we have been facing a severe reduction in DVD sales since last March. We all thought it was just a harder summer than usual (or perhaps we were hoping that was the case), but we are not seeing the traditional rebound in sales that we normally see at this time of the year. If that wasn’t enough, we have also had extreme pressure on our receivables. We have been hit with several bankruptcies by our customers, some very large like Tower Records which hit us for almost $30,000 and also several business failures where there was nothing left to collect. This has severely impacted our cash flow to the point where we have gone below break even and have been funding the operational costs from our savings.
We are currently pursuing financing options to help us weather this downturn in our industry, but if we are unsuccessful we will have no option but to dissolve Black Widow Productions, LLC.
Where this will leave you we are unsure at this point, but we have begun initial talks with our attorneys to assist us in the event that we are unsuccessful in securing financing.
We thank you for hanging in there with us, and it is our sincerest wish to continue operations and pay all of our debts in full. We will advise you as soon as we have something new to report, but we are not expecting to have any news for around 30 days due to the holidays.
Sincerely,
Richard D. Williams
President
