Economy mag may file for Chapter 11
SAN FRANCISCO — Sinking along with the Internet economy that it covered, the Industry Standard magazine will suspend publication next week and file for Chapter 11 bankruptcy protection, according to an internal company memo obtained Thursday by The Associated Press.
The memo from Standard Media Intl.’s investors and board of directors blamed the 3-year-old weekly magazine’s failure on a deep technology industry slump that has resulted in mass layoffs and drastic cutbacks. With few buyers in the market, companies reduced their advertising budgets, which hit the magazine hard.
The San Francisco-based magazine’s 150 employees will receive the news Monday when they return from a week of forced vacation, according to sources familiar with the plan. About six employees will be retained to continue running the Standard’s Web site and report on the technology industry, the sources said.
If it can reorganize its finances under the court’s supervision, the Standard hopes to revive the magazine, sources said.
After raking in $140 million in revenue last year, the Standard is on pace for $40 million this year, a drop-off of more than 70 percent, the memo said.