The largest publisher of newspapers dedicated to gay and lesbian readers in the United States has shut down and plans to wind up its affairs.

Employees arrived at work Monday to discover the sudden end to the newspapers owned by Window Media LLC. At the weekly Southern Voice in Atlanta, editor Laura Douglas-Brown said the locks were changed at her office and a note was posted on the door.

She said the company's other publications — including the Washington Blade, Houston Voice and South Florida Blade — were also being closed.

'This was the gay community writing about itself, and that's a voice we should never lose'—Michael Musto, Village Voice

"From my understanding, there was just no more money to keep these companies running," she said in a telephone interview Monday as she sat with her former employees outside their locked office. "We had all been told that the companies would be sold. The fact that we were shut down was a complete shock."

The company's financial trouble stemmed from a drop in advertising revenue across the media industry. At the same time, mainstream publications are writing more about gay and lesbian issues, reducing dependence on niche publications such as those of Window Media.

"Window Media long provided a very special outlet for the gay community to learn about itself, way before there were a lot of other places to find that type of thing," said Michael Musto, a writer for the Village Voice in New York, which is owned by Village Voice Media Holdings. "This was the gay community writing about itself, and that's a voice we should never lose."

Steven Myers, co-president of Window Media in Washington, D.C., declined comment.

Few details were available on the planned Chapter 7 filing. Unlike Chapter 11 bankruptcy cases, which protect companies from creditors as they reorganize and continue to operate, Chapter 7 involves shutting down and liquidating assets.

The company had been struggling financially since last year. Its majority investor, New York-based Avalon Equity Partners, was taken over by the U.S. Small Business Administration in August 2008, administration spokesman Dennis Byrne said. He said the SBA does not expect to recover the $7 million US that Avalon invested in Window Media.

Avalon owner David Unger said he was "not involved anymore," then hung up the phone.

Just last month, the Washington Blade, the oldest newspaper in the U.S. for gays and lesbians with a circulation of 30,000, celebrated its 40th anniversary. Former editor Kevin Naff said he was greeted Monday by Window Media employees who told him of the company's demise.