“Money’s tight,” Williams told XBIZ. “I sent a letter out to a few of our producers in Europe trying to buy some time from paying them right away, so I could pay all my current bills around here. We’re out for some investors to sell the company or invest some money in it. If that doesn’t happen, then by the second quarter of next year we’ll probably have to shut the doors.”
Williams said the chief reason for his firm’s financial trouble is the sharp drop in its DVD sales. He also blamed a number of other businesses that owe Black Widow money but haven’t paid, causing the firm to spend more than it’s making.
“I’ve had some really big [bills],” Williams said.
Williams said he has been taking money out of his personal savings account to meet the Black Widow overhead, hoping for a turnaround.
“We’re not looking that great,” he said. “But we still have the talent agency, and that’s a totally separate company. The talent agency will march forward.”
Williams said he believes the financial troubles that Black Widow is experiencing now will be repeated with other companies in adult.
“This is just the tip of the iceberg,” he said. “I think you’re going to see a lot of the smaller independents folding, because the volume is just not out there on DVD sales.”
Black Widow has shot only five movies in the past two years, and has concentrated on DVD distribution during that time.
“We used to put out 2,000 to 3,000 pieces on new release,” Williams said. “Today we get 500 to 600 out on new release. The economics aren’t there because we up front all the money. I’ve got a quarter million dollars in inventory sitting out here that I can’t get rid of, and I’ve got another quarter million in receivable, so it’s not like we’re broke. We’re just cash poor right now, like a lot of people.”
