CHATSWORTH, Calif. - Longtime Dane Productions vice president Bob called AVN this morning to announce that Ed, the owner, has abruptly closed down the business, effective immediately.

"We came in this morning at 8 o'clock," Bob said. "Ed called me, and he said, 'I want to do a conference call with the three [executives].' So when they came in, we put a conference call through, and he said because business is not what he expected it to be, he wants to shut the company down as of today.

"He's blaming me for everything, because I have a girlfriend here, which is neither here nor there," Bob went on. "It's none of his damn business what I do, but he likes to get involved with everybody's business. He said, 'I want you to leave,' and I said, 'What about the payroll?' He said, 'I'll take care of the payroll.' I said, 'What about me?' because I get paid on a 1099 form. He says, 'You cost me too much money, I'm not going to pay you anything.

"So I called the labor board," he continued, "and they said, 'He has to pay you. You sat there for two weeks.' We moved in here three weeks ago, and he gave me three weeks, and he said, 'Business is not good,' and it's all my fault. The product is not bad product, but it's old. It's hard to sell old product. People want new stuff now, and they want a lot harder stuff than what he's offering. So we put a one-stop in, and the one-stop was doing great, because we were able to get Vivid, Wicked, all this stuff, and people were buying them. But what happened is, he refuses to pay me, and that's it. That's the story."

Ed could not immediately be reached for comment. More details will follow as they become available.