The publisher of Motorcyclist, Sport Rider, Dirt Rider and several other motorcycle magazines has filed for Chapter 11 bankruptcy. The news comes just one month after Cycle World was put on sale. Source Interlink, which is owned by shady billionaire Ron Burkle's Yucaipa Cos. publishes 75 magazines, mostly in the car and motorcycle enthusiast category, making it particularly vulnerable to the downturn in both industries. Source Interlink, which also publishes Motor Trend will now become a private company.
U.S. magazine revenue, already suffering a long-term reduction, fell 20
percent in the first quarter of this year compared to a year ago. In an
agreement with lenders, $1 billion in existing Source Interlink debt
will be cancelled and around $100 million in additional liquidity will
be provided to facilitate ongoing business. It's expected that heavy
restructuring and cost cutting will now take place within the company's
publications, but it's too early to determine which, if any, titles
will be closed or sold.
Source Interlink motorcycle titles:
Super Street Bike
Bloomberg via Jalopnik