Source Interlink files for bankruptcy

[fluidfloyd]

Just saw this over at www.dragracingonline.com

Times really are tough in the publication world.
George

Source Interlink files for bankruptcy

Source Interlink Cos., the publisher of Motor Trend, Hot Rod, Car Craft and 72 other magazines controlled by billionaire Ron Burkles Yucaipa Cos., sought bankruptcy protection as it moves to become a private company.
The company, which also distributes newspapers and other publications, listed debt of $1.9 billion and assets of $2.4 billion as of April 24 in Chapter 11 documents filed yesterday in U.S. Bankruptcy Court in Wilmington, Delaware. [Editors note: We are running this story exactly as we have received it but are puzzled as to how bankruptcy works if a company has a half billion more dollars in assets that it owes.]
This restructuring will materially reduce our interest expense and debt levels, Source Interlink Chief Executive Officer Greg Mays said today (April 28) in a statement. The Bonita Springs, Florida-based company also runs Web sites and distributes CDs, video games and DVDs in the U.S.
Source Interlink was previously known as Primedia, which purchased Petersen Publishing, begun by Robert E. Petersen.

 

[Mike]

Do you really think Agent 1320 might be right about this one?

Chapter 11 is a business reorganization filing, so I'm sure the publications aren't going anywhere.

 

[GT63]

Read all about it.

Bonita Springs-based Source Interlink files for bankruptcy : Business : Naples Daily News

 

[fluidfloyd]

Do you really think Agent 1320 might be right about this one?

Chapter 11 is a business reorganization filing, so I'm sure the publications aren't going anywhere.

Mike,

I see you read the Burkster too. The magazine business has been in trouble for a lot of years. To many publications that are just copies of the competition and the same articles on how to assemble a 350 Chevy engine or coverage of a mega bucks billet trailer queen that was built in a pro shop. Advertising dollars have dropped quite a bit in the last year. Then you get groups buying each other out and getting upside down in debt. Already there have been some magazines fold up and your subscription transfered to a sister publication. I'm hearing there will be a lot more of that to come. My magazine writer friend told me the Source Group owes him for past articles. Looks like a bumpy road ahead to me.

George

 

[Mike]

I see you read the Burkster too.

Well, we all need some comic relief from time to time. Some of the stuff he reports is w-a-y out there.

 

[Hot Rod Todd]

Well I enjoy reading what hes got to say, and being at the bottom of the South Pacific, I have no idea if its all factual or not. A bit like the old SS&DI which became Drag Racing Monthly with Steve Collision as editor.

One thing I do notice tho, is the lack of magazines in shops here from the Buckaroo stable - SuperRod, Street Rod Builder etc. - have they folded?

 

[fluidfloyd]

One thing I do notice tho, is the lack of magazines in shops here from the Buckaroo stable - SuperRod, Street Rod Builder etc. - have they folded?

Hot Rod Todd,

The ole Burkster does tell it like it is. He is very opinionated and will question NHRA and any others that need it.

As for Buckaroo...according to their sole California rep they will combine some publications into one. They will also print some on a quarterly basis which is usually a death notice. John Dianna moved the whole operation to East Tennessee several years ago and has stayed below the radar the last several years. I don't think I would subscribe to anything they offered at this point. And it's not just you as I don't see much of their stuff here in the magazine stores either. In fact it looks like my local store has less of all automotive magazines in general. Time will tell.

George

 

[RPM]

I have not bought much in the way of magazines in years. All that stuff is online. I also find the magazines hard to read for these old eyes.

Big monitors and large print are a lot more user friendly.