Russh Magazine faces hard times and journo criticism

There were some particularly nasty pieces written by Daily Telegraph journalists last week regarding financial problems at three year old Russh Magazine. Not sure if there is a personal problem of some type but they really stuck the knives in the magazine.

Having run a business and worked in publishing I know only too well hard it is to run a business and how tough the publishing industry is here. Anyone with the guts to take a major risk and set up a magazine gets my vote. Especially a national glossy.

One article stated:

"Confidential can reveal a leading Sydney model and artist agency have notified publisher Dr Ian Davies that an outstanding debt of $19,000 owed by the magazine has been referred to debt collectors. The notice also reached media and leading designers, including Akira Isogawa and Alannah Hill, advising of the magazine's credit woes."

How did the notice reach media? This appears to be an intentional effort to detrimentally impact the magazines operations and credibility. Was this done out of spite or because they were fed up with trying to get paid?

Regardless, by doing this they have most likely left themselves open to serious legal action by Russh. But if the magazine has been ignoring their debtors for some time then you can understand why they would start being aggressive.

To their credit Saturday's Daily Telegraph, whilst detailing the magazines financial difficulties, also had comments from senior staff stating that whilst leaving the magazine they were not owed any money.

Furthermore they did attempt to contact the magazines' owner for comment but he didn't take or return their calls. This is never a wise move, far better to speak to the media and put forward what is happening from your perspective. But did the Tele give him sufficient time to reply?

"Dr Davies, who did not return Confidential's calls yesterday, split from Bruno Giagu, his original business partner on Russh , two issues after its launch in 2004."

I have worked at an independent, young magazine and remember the difficulties getting advertisers to pay. One in particular, a major company, refused to pay knowing that we didn't have the force of an ACP or News Limited behind us. This then, of course, led to us having problems with our creditors. I don't know if Russh has had the same problem but it wouldn't surprise me.

In my business I can not count the number of times I have had to write off significant amounts of money. Easily well over 100k that I've lost from clients not abiding to their contracts and not paying money owed. This of course has led to real problems for me paying my accounts.

When the dotcom bust occurred a friend's consultancy had major problems and came close to folding you should have seen the vultures circling. This was a very successful, credible consultancy run by very decent, hardworking professionals.

Media articles appeared about them folding, people gossiping about their downfall, competitor companies trying to poach their remainder clients (who all refused to jump ship to their real credit). Why do we find some joy in people's problems?!

Happily not only did they pull through but they rebuilt the company and are now one of the best and biggest. And good on them!

It's easy for journalists to criticise Russh, they have never set up a business, taken a major risk, put their own considerable money on the line. Then hired people and had the enormous responsibility of paying them every month regardless. The stress is absolutely enormous and employees just can not appreciate it.

We need to support anyone who is willing to take a major risk like this and establish a magazine. Pretty much all the major publications in Australia with the exception of a few are owned by the major publishing companies News Ltd, Pacific Publications, ACP.

If we want up and coming journalists, stylists and photographers to have the opportunity to get their break we really need these independent magazines. Instead of harshly criticising a business operation experiencing hard times why don't we maturely realise that running a business is tough and of course there are going to be financial problems.

Look at the massive success stories who once nearly lost everything and at times coudn't meet staff wages. Amazon, The Body Shop, Bridge Climb. They just made it through and are now hugely successful.

Michael McHugh, ex FPC, is launching a new magazine in a couple of months called Mind Food a GQ type magazine for women. Finally a magazine which identifies that women are interested in more than fashion, shopping, relationships and cosmetics! I hope the entire industry gets behind it.

Why doesn't the industry do this now for Russh instead trying to hasten its demise?

And a last, apt word from a business journalist who knows a thing or three about running a business:

"If you haven't been vomiting blood out of worry and fear that you may not be able to meet the next months wages bill - chances are you haven't been a small business person" - Tony Blackie BRW.