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"The Source" Finally Goes On The Auction Block, Mag Up For Sale Today
The Source Magazine is going up for sale today (July 27) to the highest bidder.
A rep for the magazine confirmed to SOHH.com that an auction selling shares of the magazine is currently in progress. As SOHH previously reported, Textron Financial Corp. has been attempting to sell former Source publisher Dave Mays' 82% shares in the hip-hop publication since Mays has failed to repay $18 million dollars loaned by them in 2002. Previous attempts to schedule auctions for the sale of the magazine were postponed.
In related news, The Source could end up in the hands of Complex Media, part of Marc Ecko Enterprises. Last month, an Ecko rep confirmed that the company is interested in purchasing the shares up for sale. Ecko currently owns Ecko Unltd. Clothing, G-Unit Clothing, Zoo York, Avirex and Complex Magazine.
While Textron does control the 82% shares formally owned by Mays, the Black Enterprise Private Equity Fund, backed by Earl Graves, Sr. and Citigroup, own the remaining 18% of The Source. That fund loaned $17 million to The Source in 2002.
The Source's new board of directors ousted the Mays and magazine president Raymond "Benzino" Scott back in January after serious concerns were raised about the magazine's leadership based on ongoing legal troubles including the failure to repay their debts.
Source: sohh.com
A rep for the magazine confirmed to SOHH.com that an auction selling shares of the magazine is currently in progress. As SOHH previously reported, Textron Financial Corp. has been attempting to sell former Source publisher Dave Mays' 82% shares in the hip-hop publication since Mays has failed to repay $18 million dollars loaned by them in 2002. Previous attempts to schedule auctions for the sale of the magazine were postponed.
In related news, The Source could end up in the hands of Complex Media, part of Marc Ecko Enterprises. Last month, an Ecko rep confirmed that the company is interested in purchasing the shares up for sale. Ecko currently owns Ecko Unltd. Clothing, G-Unit Clothing, Zoo York, Avirex and Complex Magazine.
While Textron does control the 82% shares formally owned by Mays, the Black Enterprise Private Equity Fund, backed by Earl Graves, Sr. and Citigroup, own the remaining 18% of The Source. That fund loaned $17 million to The Source in 2002.
The Source's new board of directors ousted the Mays and magazine president Raymond "Benzino" Scott back in January after serious concerns were raised about the magazine's leadership based on ongoing legal troubles including the failure to repay their debts.
Source: sohh.com