fish_antlers
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The Truth is Out There
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posted April 29, 2009 12:41 PM
 Edited By: fish_antlers on 29 Apr 2009 20:52
Motorcyclist Magazine Parent Company files for Bankruptcy
Source Interlink Cos., the publisher of Motor Trend, Hot Rod and Street Chopper magazines controlled by billionaire Ron Burkle’s 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.
Source Interlink publishes 75 magazines, mostly about cars and motorcycles, putting it at the nexus of two struggling industries. Iconic Motor Trend is in bankruptcy as Chrysler LLC and General Motors Corp. face a similar fate this week and next month.
“This restructuring will materially reduce our interest expense and debt levels,” Source Interlink Chief Executive Officer Greg Mays said today in a statement. The Bonita Springs, Florida-based company also runs Web sites and distributes CDs, video games and DVDs in the U.S.
U.S. magazine advertising revenue in the first quarter fell 20 percent from a year earlier, according to the Publisher’s Information Bureau, an industry group. U.S. auto sales tumbled 37 percent in March. Source Interlink hasn’t reported a profit since the second quarter of 2007.
Acquired from Primedia
The company bought the automotive magazines, as well as Surfer, Lowrider, Power & Motoryacht and Snowboarder, from Primedia Inc. in August 2007 for about $1.2 billion. It also acquired Soap Opera Digest and Soap Opera Weekly.
Primedia, controlled by private-equity firm Kohlberg Kravis Roberts & Co., put its magazine group up for sale to pay off debt and focus on its free auto and real estate guides. The company also sold its Channel One educational television.
Under an agreement with lenders, about $1 billion of existing debt will be canceled and about $100 million additional liquidity will be provided, Source Interlink said. The company said a lender-approved plan of reorganization will be filed.
In February, the company won a temporary court order prohibiting publishers from blocking magazine shipments to its distribution business. The publishers had objected to a 7-cent delivery surcharge, imposed by the company and since rescinded, according to court papers.
AEC Associates LLC, directly and indirectly, through Digital On-Demand Inc.; Yucaipa One-Stop Partners LP; Yucaipa AEC Associates LLC; OA3 LLC and R. Burkle, own 48.37 percent of the common stock of the company, according to court papers. Scopia Management Inc. owns 9.01 percent, Goldman Sachs Group owns 17.7 percent and the remaining common stock is owned by Dimensional Fund Advisors.
Former President Bill Clinton left his partnership with Burkle’s Yucaipa Cos. in October 2007 while U.S. Secretary of State Hillary Clinton campaigned for president. He previously earned $15.4 million in other fees from Yucaipa since 2003, according to tax documents the Clintons released in April 2008.
The case is Source Interlink Companies Inc., 09-11424, U.S. Bankruptcy Court, District of Delaware (Wilmington).
Source: Bloomberg
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What business is it of yours where I'm from, Friendo?
   
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fish_antlers
Administrator
The Truth is Out There
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posted April 29, 2009 12:58 PM
so much for that free subscription offer that was posted the other day 
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What business is it of yours where I'm from, Friendo?
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faz
Parking Attendant
Posts: 28
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posted April 29, 2009 01:38 PM
shoot...
And I literally renewed my subscription online for both Motor Trend and Motorcyclist magazines just about 2 hours ago! 
I like both magazines... for less than a buck each delivered to your door, you can't go wrong.
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Ricksgsxr
Zone Head
Posts: 511
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posted April 29, 2009 02:48 PM
They are one of my employers clients.
Interesting link. I guess a web page can exist for just about anything..
http://layoffdaily.com/
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fish_antlers
Administrator
The Truth is Out There
Posts: 21894
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posted April 29, 2009 03:01 PM
assist ... http://layoffdaily.com/
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What business is it of yours where I'm from, Friendo?
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gilberjj
Needs a job
Friend of Fast
Posts: 3196
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posted April 29, 2009 11:06 PM
dang..... that sucks
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H2 to ZX12
Needs a job
two stroke power
Posts: 3674
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posted April 30, 2009 02:42 AM
gotta admit that I don't buy the mags for the last 10 years or so. amazing considering I read every one that I could get my hands on (along with hot rod, car craft, 4wheeler, and dirtbike) from about 12 years old on at news stands or subscription. oh well, at least it'll save trees 
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eklipse636
Needs a life
ZX-14
Posts: 6046
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posted April 30, 2009 03:35 AM
I am/was a subcriber to motorcyclist and cycle world, only bc the subscription was either free or dirt cheap! And I wandered then, how in the hell do they make it? But I see now giving mags away for free wasn't the best thing to do..
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Best: 60ft 1.351 1/8 5.68 mph 123.98 1/4
8.89 mph 151.32
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H2 to ZX12
Needs a job
two stroke power
Posts: 3674
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posted April 30, 2009 08:54 AM
Mags are getting very thin as advertizing money is drying up.
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Sticks_n_Stones
Needs a job
Posts: 3930
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posted April 30, 2009 10:41 AM
I've often wondered why they dont get involved/linked to the websites online that are targeted for there market? Fish, tell me if this would work: Say Cycle World came to you and offered to both post up all there tests that pertain to your sites forums for a percentage of your advertising fees. The more you payed the more content you got up too and including everything they have. There requirement would be that only registered members could browse there content, and maybe with linking disabled. They would also agree to have a editor or journalist stop in at least once a day and answer the questions posted regarding each article. If they were smart, they could also have back filler stories done up of the bikes or events that there linked websites have going on.
Lets face it, Fish, PK, Freak, etc. are very unique in the web site business in that they travel alot just to meet members and setup events nationwide, and even test ride new bikes and such just like real journalists. Don't expect to get that just about anywhere else, and even that dedication has its limits - financial limits. Without the big mags we would be clueless as to what each bikes REAL benefits and qualities are. We would be left to totally bogus HP claims (BMW), completely innaccurate tachs (Yamaha) and way off speedos (everything from Japan).
And the most important of all: without our magazines, what are we going to wipe with when we forget to check the toiletpaper roll before sitting down for a 'study'? 
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'06 zx14
Muzzy M10/M14
PCIII w/ Muzzy map
Flies out K&N in!
bits n pieces...
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faz
Parking Attendant
Posts: 28
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posted April 30, 2009 03:35 PM
quote:
I am/was a subcriber to motorcyclist and cycle world, only bc the subscription was either free or dirt cheap! And I wandered then, how in the hell do they make it? But I see now giving mags away for free wasn't the best thing to do..
I think the main source of their income is advertising, and not the actual sales of the paper. It probably cost them more to print/deliver the paper to subscriber than the money they get in subscription.
Number of subscribers is what they can attract advertisers with. They can guarantee that an ad will reach for example 500,000 subscribers and charge accordingly... vs. saying the ad will only reach 150,000 subscribers. That is why they try and get more subscribers.
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eklipse636
Needs a life
ZX-14
Posts: 6046
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posted April 30, 2009 04:26 PM
Very true. LOL @ mag good for wiping!!!
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Best: 60ft 1.351 1/8 5.68 mph 123.98 1/4
8.89 mph 151.32
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