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Hip-hop fashion mogul Marc Ecko is looking to buy former The Source Magazine publisher Dave Mays' shares in the magazine in an auction to take place on Monday (June 5), according to sources close to the publication.
"Yes, we are currently exploring that and other opportunities to expand our publishing operations," Clint Caldwell, Marc Ecko Enterprises' Director of Corporate Communications, told SOHH regarding the auction. "The Source was once an icon and a tremendous magazine. With the proper leadership and an infusion of cash, Complex Media would bring The Source back to prominence."
Word is Textron Financial Corp., the Source's principal lender, has been trying to auction Mays' 82% in shares for over a month now. The auction was initially slated to occur on May 4, but was postponed. The remaining 18% of The Source is owned by The Black Enterprise Private Equity Fund, which is backed by Earl Graves, Sr. and Citigroup. The fund loaned the magazine $17 million in 2002.
Earlier this year, Mays and his partner Raymond "Benzino" Scott were ousted by The Source's new board of directors. Prior to being kicked out, Mays and Benzino reportedly owed Textron Financial over $18 million. The self-proclaimed hip-hop bible apparently lost over $11 million in the last four years under Mays and Zino's watch.
Mays filed for bankruptcy months after being ousted.
Ecko presently owns several businesses, including Ecko Ultd Clothing, Complex Magazine, G-Unit Clothing, Zoo York and Avirex.
Source: sohh.com
"Yes, we are currently exploring that and other opportunities to expand our publishing operations," Clint Caldwell, Marc Ecko Enterprises' Director of Corporate Communications, told SOHH regarding the auction. "The Source was once an icon and a tremendous magazine. With the proper leadership and an infusion of cash, Complex Media would bring The Source back to prominence."
Word is Textron Financial Corp., the Source's principal lender, has been trying to auction Mays' 82% in shares for over a month now. The auction was initially slated to occur on May 4, but was postponed. The remaining 18% of The Source is owned by The Black Enterprise Private Equity Fund, which is backed by Earl Graves, Sr. and Citigroup. The fund loaned the magazine $17 million in 2002.
Earlier this year, Mays and his partner Raymond "Benzino" Scott were ousted by The Source's new board of directors. Prior to being kicked out, Mays and Benzino reportedly owed Textron Financial over $18 million. The self-proclaimed hip-hop bible apparently lost over $11 million in the last four years under Mays and Zino's watch.
Mays filed for bankruptcy months after being ousted.
Ecko presently owns several businesses, including Ecko Ultd Clothing, Complex Magazine, G-Unit Clothing, Zoo York and Avirex.
Source: sohh.com