Tue 30 Jun 2009
yours truly on my 225cc putt-putt on the Vibe contributors page back in the day : (
The reason for the closing: CEO Steve Aarons says: “the company tried in vain to either find new investors or “to restructure the huge debt on our small company.”
New York Times reports: “Vibe’s closure leaves just one large-circulation magazine, The Source, focusing on hip-hop and R&B. The Source has had its own troubles, going through a bankruptcy and emerging under new ownership last year. A rock-focused magazine, Blender, folded last year.”
Umm…has NYT ever heard of a magazine called XXL?
RapRadar: Vibe’s final cover, The Dream and Christina Millian (naked)
There will be a staff meeting at 2pm. They were reportedly unaware of the decision until this morning.
UPDATE: Editor-in-chief (and my former EIC) Danyel Smith says…
“They just messed my magazine all up, but I’m gonna get it back. You better believe it, I’m’a take it online because print and all that stuff is over.”
The letter from the CEO of the parent company ….after the jump.
Dear VIBE Team:
It is with a heavy heart that I share some tough news, VMG is closing down effective today, June 30th.
It’s been an 16 incredible years since VIBE’s inception. There are very few magazines with the richness of history and breadth of talented visionaries who created the powerful lens in which VIBE viewed and shaped urban music and culture.
Ever since I first set foot in this courageous company, I’ve regarded myself as incredibly fortunate to be be involved with this remarkable brand and group of individuals whose performance has never been nothing short of outstanding. We finished 2008 in an improved position versus the prior year, and accomplished so much, including:
* Editorial Awards
* Editorial transformation into content dept
* New Ad accounts being broken
* The Most Mag Launch
* Award winning re-design
* Profitable digital operation
* VIBE.com growth and improvements and programs such as Best Rapper Ever, #1 Stan, etc
* Mobile VIBE launch
* Micro-site development Mostmag.com to start off.
* V Sessions
* Improved PR coverage
Unfortunately, over the last several months, a confluence of events has obviously posed VMG to exceedingly serious challenges.
* The collapse of the capital markets has impacted us greatly. Over the past several months, we have actively pursued investment resources while working intensively with our bank to find a solution. But the deal market right now remains very poor and at the end of the day, the lack of investment resources to restructure the huge debt on our small company has made this outcome become a reality.
* The print advertising collapse hit VIBE hard, especially as key ad categories like automotive and fashion, which represented the bulk of our top 10 advertisers, have stopped advertising or gone out of business. It’s also unfortunate that in a recession many companies reduce the multi-cultural campaigns. These facts, coupled with the continuing decline of the music industry not to mention the newsstand wholesaler consolidation in early 2009 all negatively impacted our business in a significant way.
* The relentless economic situation has depressed our growth initiatives on the digital front. To be clear, VMG has made significant improvement in this part of our business, but not at the accelerated pace required to offset the devastating effects of the most severe recession in our lifetime and the accompanying print losses.
I want to thank you all for your hard work and commitment, and for all of the adventures along the way. I’ll miss this place a lot, but I’ll miss you all and the magic you create.
Vibe will be remembered as a shockingly brilliant content company that everyone can be proud of and I look forward with great excitement to all of future endeavors you all pursue.
With great affection and respect –
former CEO of VIBE Media Group