The Publishers Wekly Web site published an article on Monday about the state of CrossGen Comics' financial affairs, saying that the "maverick" publisher has hit "turbulent financial waters".
Following several CrossGen freelancers going public with complaints about unpaid work, the publisher's Chief Financial Officer, Mike Beattie, left the company abruptly in early September. This was quickly followed by rumors of artists looking for work at other publishers.
The reasons for the financial troubles, according to the article, was that the investors for a planned second round of financing pulled out early this summer, leaving CrossGen struggling for cash.
"We're in the process of finalizing a second round of financing," Chris Oarr, CrossGen's director of marketing and sales, told Publishers Weekly. "My understanding is that you will be writing a very different story in about five days."
The financial difficulties affected both the publisher's monthly comic books as well as their ambitious trade paperback program. In the last few months, several issues have missed their originally-scheduled release dates whilst the TPB program has gone missing altogether.
"We certainly have had to tighten our belt in terms of the release schedule on our trade book side," Oarr said. "Despite all that, we shipped 35,000 copies of Meridian Vol. 1 to Scholastic Book Fairs and Scholastic Book Clubs in early July and also debuted the new He-Man and The Masters of The Universe series of books."
Oarr reiterated that the trade paperback program, including the much-anticipated collection of Brian Pulido's Lady Death, should be back on track once the publisher's second round of financing is finalized.
"As it stands, we should be addressing the backlog of trade books within the next three weeks, and we should clear that backlog well before the end of the year," Oarr said. "We'll probably be ready to announce a book schedule the second or third week of October."