Source Interlink, publisher of such motorcycle magazines as: Motorcyclist, Sport Rider, Dirt Rider, has filed for Chapter 11 bankruptcy. The company, which is owned by billionaire Ron Burkle’s Yucaipa Cos., is expected to privatize after the bankruptcy, with debtors losing nearly $1 billion in outstanding loans.
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.
On the potential chopping block is the following motorcycle titles: ATV Rider, Baggers, Dirt Rider, Hot Bike, Motorcycle Cruiser, Motorcyclist, Sport Rider, Street Chopper, & Super Street Bike
With Cycleworld just recently up on the for sale block, its no big story that U.S. magazines are having a hard time of things. Advertising revenue fell in the first quarter by 20% from last year, according to the Publisher’s Information Bureau, an industry group. Combine that with the fact that U.S. auto sales tumbled 37% in March, and you might not be as surprised to hear that Source Interlink hasn’t reported a profit since the second quarter of 2007.