Fingers Point as Doubledown Files for Bankruptcy

Defunct Doubledown Media has finally filed for bankruptcy. Let the recriminations begin.

In the weeks since the company, home to Trader Monthly and other targeted high-end titles, suspended operations, its unlucky employees and investors have been scrambling to assign blame, with most fingers pointing at president Randall Lane. In the view of his detractors, Lane hastened Doubledown's demise by making bad deals and fighting unnecessary legal battles, and misled his underlings by continuing to assure them all was well long after he knew otherwise.

"The economy didn't kill Doubledown Media -- Randall Lane killed Doubledown Media," says Aaron Sigmond, editor and publisher of Cigar Report and group luxury editor of the company. "The economy simply provided him with a convent excuse to shift the blame."

"The company's failure really didn't have as much to do with the economy as people think," agrees Rachel Pine, Doubledown's former head of marketing and communications and an investor. "The company was terribly run and Randall's bad business decisions put us in bed with all these people" -- people like former baseball star Lenny Dykstra, whose relationship with Doubledown ended in a messy lawsuit.

Doubledown also found itself facing off in court against Deedee Morrison, who founded Private Air magazine and sold it to Doubledown in January 2007. Morrison went to arbitration for wrongful termination and was awarded up to $1.25 million in December. A hearing was scheduled today to certify her award; that hearing was preempted by yesterday's bankruptcy filing. Sources say at least three former business-side employees are now preparing lawsuits of their own.

With Doubledown mired in Chapter 7, the only satisfaction anyone's likely to get in the near future is that of saying "I told you so." Sigmond can lay claim to being a whistleblower, having written a letter in early November to all of Doubledown's executives and investors calling for Lane to be replaced. "[G]iven these tumultuous times, decisive and strategic actions are required to not only survive, but thrive," Sigmond wrote. "Randall Lane is not a leader who can bring any of these qualities to the table. He is not one to guide us through treacherous waters."

Asked about the letter, Lane declined comment and directed me instead to Magnus Greaves, Doubledown's founder. Greaves said this:

I have had nothing but huge respect and admiration for Randall's visionary leadership of DDM since we started the company together back in 2004. In fact, my trust in him only increased as the situation got worse as he managed to keep things going for so long.

I did receive the letter in question and found it to be ridiculous and way off base to the point that I called Aaron Sigmond immediately to discuss it. During this conversation, Aaron admitted that he probably went too far out of frustration and that his energies would have been put to better use if he acted as more of a teammate in helping DDM to find solutions.

Told of Greaves' response, Sigmond replied, "I stand by my letter and I disagree with Magnus."

Earlier: Doubledown Refugees Gather for 'Sorrowfest 2009'

What's Going Down at Doubledown?