An offer to purchase the note on the building housing Soul of the South and several related entities fell through after three days late last month.
Matthew Davidge, co-owner of a holding company called Interactivation, submitted a letter of intent June 26 to purchase the building at 1 Shackleford Drive for an undisclosed price. The holding company has offices in New York and Wisconsin and owns several television and health properties.
Several entities have an interest in the building, including Arkansas Capital Corp. and the Arkansas Economic Development Commission, for loans and grants provided to Soul of the South, according to real estate records. The building is owned by Rock City Media LLC, a company with ties to Soul of the South, but ACC holds the note for a $1.5 million loan.
Just three days after submitting the letter of intent to ACC, Davidge withdrew the offer. He gave no reason but noted he had spoken with Ladly Abraham, chairman of Soul of the South’s board of directors, and felt like changes should be made at the company.
As he wrote to Arkansas Capital Corp.: “In my opinion, Soul of the South will fail unless new management is brought in, a new business strategy is adopted, and new investment capital is raised. (Good luck with all that.)”
Davidge did not immediately return a message seeking additional comment.
Soul of the South CEO Doug McHenry said earlier this year that the company was struggling to pay its bills, and he has not called a board meeting in several months. McHenry has not returned messages seeking comment in recent weeks, and board secretary Bill Campbell said he had not heard about the proposal.
Mac Hogan, a board member and early investor in the company, resigned from the board and its related entities last month. He wrote in his resignation letter that he “assume[d] the company has ceased operations.”
Campbell denied that claim in a recent interview.