Source Interlink, the mega-publishing firm that owns Automobile, Motor Trend, Hot Rod and dozens of other enthusiast print and web titles, filed for Chapter 11 bankruptcy protection in a Wilmington, Delaware court yesterday. According to the filing, Source Interlink has a listed debt of $1.9 billion and assets amounting to $2.4 billion, and in a statement from Greg Mays, Source's CEO said "This restructuring will materially reduce our interest expense and debt levels."
It appears that today is the day for shedding divisions, as in addition to news that Daimler has sold a majority stake in Chrysler to the Cerberus Group, we've also learned that Primedia has finally unloaded its Enthusiast Media division to Source Interlink. The Enthusiast Media division of Primedia includes 70 magazines titles and 90 websites, including Motor Trend and Automobile Magazine, among others.
PRIMEDIA Inc., the parent publishing company that's responsible for Motor Trend, along with other enthusiast mags like Automobile and Hot Rod, have announced that it's "exploring the sale" of its Enthusiast Media division. While the sale price will probably be more than the going rate for a subscription to MT, one has to wonder if the division isn't being sold because the value of print media is falling faster by the second. The Enthusiast Media division is comprised of 90 websites, however, inc