Source Interlink Companies, Inc.

Dave Sharp    Mays Landing, NJ

Posted at 8:59am on Saturday, October 17th, 2009

I have been a subscriber of their publications since the 1970's. Now they are employing high-pressure renewal tactics that were not part of their process in the past.

Eric Kallgren    Boulder, Colorado USA

Posted at 10:39pm on Wednesday, April 29th, 2009

Source Interlink filed for Chapter 11 bankruptcy protection on April 28, 2009. The filing will result in Ron Burkle's Yucaipa Companies being removed as a shareholder, allowing the company to get out from under nearly $1 billion of its $1.5 billion debt load in a debt-for-equity swap.

Citigroup will become the biggest shareholder of Source Interlink, with about 80 percent of the equity in a new privately held company.

Most of the debt that led to the bankruptcy filing was tied to Source's $1.2 billion acquistion of the Primedia Enthusiast Media division in May 2007.

Source Interlink released this statement, including some laughable corporate happy-talk:

"On Tuesday, we announced that we had reached a very favorable agreement with our lenders to privatize the company and cancel nearly $1 billion of our existing debt. The agreement follows proactive management actions taken over the last six months to right-size our operations - saving more than $50 million a year in expense. This is great news for Source and our business partners.

Our business plan, which has the support of our lenders, provides for business to continue as usual - you will continue to receive the same level of service you have come to expect. Processes for ordering product, payment terms, and delivery dates will remain the same, all customer programs will continue without alteration, and importantly, ALL our vendors will be paid in full in the ordinary course of business. Your stores will continue to receive the exceptional service and range of products that you have come to expect from Source Interlink. The sales and field staff you deal with remain unchanged, as will the remainder of our employees. Our management team will remain at the helm and are committed to this business plan. None of our employees will lose their jobs as a result of this reorganization."

Ron Bashal    New York, U.S.A

Posted at 9:13am on Monday, November 10th, 2008

I have been watching this company for some time and am concerned about this type of consolidation and its negative impact on the publishing - digital and print - industry. I have also noted that they are dominating distribution to the point of eliminating all competition. Consolidation by these companies has not proven effective or profitable. If you have watched their stock it has fallen and continues to fall precipitously. I have also noted that they used bankruptcy and other questionable means in obtaining the companies they have consolidated, and then leaving the previous owners holding the bag.

Have to question managment techniques, ethics and endgame in this type of operation.

Eric Kallgren    Boulder, Colorado USA

Posted at 5:47pm on Thursday, October 23rd, 2008

Source Interlink probably regrets the decision to buy the Primedia Enthusiast Group in 2007, which cost over $1.2 billion.

On October 23, 2008, Souce Interlink announced that Greg Mays has been named the new chairman and CEO of the company, replacing Michael Duckworth.

BONITA SPRINGS, FL, October 23, 2008 – Source Interlink Companies, Inc. (NASDAQ: SORC), one of the largest publishers of magazines and online content for enthusiast audiences and a leading distributor of DVDs, CDs, magazines, video games and books, announced today the appointment of Greg Mays as Chairman and Chief Executive Officer of Source Interlink Companies, Inc. effective immediately.

“I am very pleased that Greg was elected CEO of Source Interlink," said Ron Burkle, Managing Partner at Yucaipa Companies, an investment firm with a significant investment in Source Interlink. "Greg has the perfect combination of leadership and business development skills needed here. His record of managing successful companies for Yucaipa speaks for itself, and the vision he has set for the future of Source confirms my confidence in the value of this investment.”

Greg Mays, has been on Source Interlink's Board of Directors since February 2005 and has served as the Chairman of the Company's Compensation and Corporate Governance Committees and been a member of the Audit Committee. Mr. Mays is currently a Director of The Great Atlantic & Pacific Tea Company, Inc. (A&P) and of Simon Worldwide Inc.. Mr. Mays had also been a Director of Pathmark Stores, Inc. from June 2005 until it was acquired by A&P last December, at which time he joined the A&P Board. Mr. Mays has over thirty years experience in the supermarket and retailing industry in senior executive positions. Most recently, Mr. Mays served as Chairman and Chief Executive Officer of Wild Oats Markets until its acquisition by Whole Foods Markets, Inc. late last year. Prior to that, since 2000 Mr. Mays had maintained a consultancy practice providing retail industry expertise and related services to private equity organizations. Throughout the nineties Mr. Mays served in a number of senior executive positions in the supermarket retail industry.

Damon Adkins    Texas City, Texas

Posted at 11:26am on Tuesday, June 3rd, 2008

Hi. My name is Damon Adkins. I reside in Texas City,Tx, which is the county of Galveston. I am looking for a position with your company as a part-time merchandiser in my area if available. Please contact me by calling H:(409) 948-0387 or my cell: (409)739-0898. Or you may reach me by email @ dadkins4@comcast.net
Thank-you for your time.