944 Magazine Files for Bankruptcy; Publishes Listacle About How Sexy Chapter 11 Is
944 Media basically publishes the same magazine in ten different cities, tweaks them a bit, and calls them local editions -- one of which is distributed here in Miami. Now the company has filed for bankruptcy, though the company plans to keep publishing.
"The whole point of this proceeding is to enable us to keep doing what we do while resolving the litigation in an orderly process. We are confident that 944 Media will be able to resolve our pending issues, but prudence dictates that we take steps to protect ourselves, our employees and our clients through the Chapter 11 process," said founder and CEO Marc Lotenberg in a press release.
The company is the target of two lawsuits and is in debt to several creditors. The Las Vegas Sun reports that it has about $1 to $10 million in assets and $10 million to $50 million in liabilities. It owes about $2.45 million to Creel Printing & Publishing Co. of Las Vegas, one of its largest creditors.
Oddly, the company's website currently lists the "Top 9 Fun Facts about Chapter 11 and Hot Lawyers."
Here's a sampling:
4. So Hot Right Now, So Hot: Chapter 11 filings (the most common type for businesses) increased 91% in 2009.
6. Legal Boxers, or Breifs?: According to lawyer Ronit Berkovich, a Weil Goshal associate, declared in the ABA Journal that bankruptcy is "hot and sexy." (See number 7)
7. Hire a Hot One: That said, if you're thinking of filing personal bankruptcy, an important consideration should be the hotness of your attorney.
The company still plans to churn out its um, "totally hot" copy. It will unveil a new logo soon to take the brand to "a more sophisticated level," and of course plans to keep throwing parties.