One of the country’s largest magazine wholesalers officially went bust on Monday — one month after losing its largest customer.
The parent of Source Interlink Distribution, which trucked magazines from warehouses to retailers for Time Inc. and others, filed for Chapter 11 bankruptcy court protection after losing money for years.
While Time Inc., which publishes some of the best-read magazines in the country, like People, Sports Illustrated and InStyle, was the hardest-hit by Source’s shuttering, the entire industry felt the blow and some retailers could see a magazine shortage this summer as the industry looks for other companies to fill the void.
Source is owned by Golden Tree Asset Management, a hedge fund, with an 82 percent stake. JPMorgan owns 9.3 percent and GE Capital has a 5.7 percent stake.
The parent, Source Home Entertainment, owes Time Warner Retail Sales $53,776,843, according to court papers. Time Inc., in a filing, said it expected Source’s shutdown will decrease operating cash flows by $12 million.