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Troy
Rating: N/A
Votes: 0 (Vote!) | | Posted on Sunday, December 07, 2003 - 10:34 am: | 
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I know this is all old news but I was wondering if anyone had any comments.
I feel for all of the talented people working for the effected publications. There is rarely a good time to lose your job; the holiday season is probably the worst...
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THE KIP BUSINESS REPORT EMAIL ALERT - 11/25/03
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VANGUARDE MEDIA FILES FOR BANKRUPTCY
Vanguarde Media, Inc. (VMI) publisher of Savoy, Honey, and Heart & Soul magazines will file for Chapter 11 bankruptcy protection, after failing to secure additional capital to keep its doors open.
According to BlackAmericaToday.com, VMI Chairman and CEO Keith T. Clinkscales, along with the company's largest investor, Fred Terrell of Provender Capital Group, LLC, broke the news to employees late Tuesday that the firm would
immediately close its doors and layoff more than 70 employees.
Clinkscales founded VMI in 1999 after resigning abruptly from his position as VIBE magazine’s president and CEO. Clinkscales quickly grew VMI with a series of high profile acquisitions and most recently launched Savoy Professional
magazine earlier this year.
As recently as this February, the company announced that media and entertainment heavyweight Straus Zelnick, former CEO of BMG Entertainment, took an undisclosed minority stake in VMI rumored to be eight figures. At the time of that announcement, VMI reported that ad pages for its titles were up 54% over the
previous year and that plans were underway for further expansion into
television and movies.
More details as they become available.
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To contact The KIP Business Report:
1916 Park Avenue, Suite 601
New York, NY 10037
www.kipbusinessreport.com
Email: newsdesk@kipbusinessreport.com
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Chris Hayden
Rating: N/A
Votes: 0 (Vote!) | | Posted on Monday, December 08, 2003 - 02:39 pm: |
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Troy:
I'm sorry to see them fold but I did think that they were saturating the market--what really was the difference between all of them--and they had to go head to head with Upscale, Vibe, Jet, and Ebony besides.
Since magazines now make most of their money from advertising revenues as opposed to newstand sales and subscriptions, I think starting a magazine is a risky venture at this time. |
Troy
Rating: N/A
Votes: 0 (Vote!) | | Posted on Monday, December 08, 2003 - 06:05 pm: |
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Initially I would not have grouped the magazines you listed together. However considering I don't subscribe to any of them you may have a point, Chris.
I did subscribe to Emerge, which I believe Vanguarde Media took control over but subsequently dropped.
If I were to examining the magazines to which our household subscribes (including American Legacy, QBR, Black Issues Book Review, Essence, Black Enterprise, Mosaic), and compare them to the Vanguarde offerings I see only one distinquishing factor. Vanguarde's publications were designed to appeal a very broad and/or young audience.
Now I just got back from visiting Vanguarde's web site for the first time www.vanguarde.com (very nice intro if you have flash). Judging by their web site, it is obvious Vanguarde had some money. The sites of the magazines which I subscribe can't conpare in terms of design. I suspect Vanguarde was just spending too much money too quickly to make investors comfortable
If you are in NYC Dec 12th Black Americans in Publishing will be hosting an interesting panel dicussion on THE MAGAZINE PUBLISHING INDUSTRY. Anita Diggs (http://authors.aalbc.com/anitadoreendiggs.htm)from Savoy Magazine will be participating.
Visit http://www.thumperscorner.com/cgi/calendar/long_calendar.cgi for more information.
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Chris Hayden
Rating: N/A
Votes: 0 (Vote!) | | Posted on Monday, December 08, 2003 - 06:51 pm: |
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The whole magazine field just seems saturated at this point--if I was going to start a magazine if it was not a skin mag I would have to really think about it--I don't think the black market is big enough for niche marketing (Black Gun Owners Mag) or something.
Maybe I might think of a litmag, but it would definitiely be a labor of love and only because I loved literature and I'd have to have something going on the side |
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