- March 28, 2024
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The ripple effects of Source Interlink's abrupt shutdown last month will likely be felt throughout the magazine-publishing industry for a while.
Source Interlink announced last month that it was ceasing its magazine-distribution operations after a dispute with Time Inc. Source filed for bankruptcy and laid off 6,000 people including 240 employees at its headquarters in Bonita Springs.
But the repercussions of the shutdown are now becoming apparent and they're widespread.
For example, on July 1, American Media, publisher of the National Enquirer, Men's Fitness and other publications, told investors that it couldn't file its annual report in time because Source had filed for bankruptcy. Further, it said revenues could be hurt by as much as $10 million to $20 million until a replacement distributor is found. That higher sum is 27% of American Media's most recent quarterly revenues.
Source was one of the largest magazine-distribution companies in the country before it shuttered last month. It supplied 45,000 retail outlets including Walmart with magazines, including Time.