Now Magazine publisher Media Central Corporation Inc. files for bankruptcy
The parent company that controls Now Magazine has voluntarily filed for bankruptcy, saying it has liabilities of $2.25 million and total assets of just $352.
Toronto-based publishing company Media Central Corp. Inc., which is listed on the Canadian Securities Exchange and in Germany, said its debt includes a $1 million convertible debenture held by a group of investors. Earlier this month the company said it was trying to reach an agreement with creditors after defaulting on the loan.
The bankruptcy filing will not affect the company’s two flagship publications, Now Magazine, published in Toronto by subsidiary Now Central Communications Inc., and Georgia Straight, published by Vancouver Free Press Publishing Corp., according to the company.
While Media Central said Now Magazine would continue publishing as usual, the news and entertainment magazine’s acting editor Radheyan Simonpillai posted on Twitter in early March that Now was reducing its print publications as a measure to economy during its transition. its audience online.
In 2019, the company launched digital cannabis publication CannCentral, and the following year opened eCentralSports, an online gaming medium. Media Central did not say whether the two websites would continue to operate.
Media Central’s voluntary bankruptcy follows a series of management changes and other changes within the company.
On March 9, Media Central reported that CFO Carmelo Marrelli had stepped down effective January 25, after less than a year in the role. In the same statement, it said its 2020 auditors, Fazzari + Partners, had resigned.
In mid-March, the company said in a statement that it was still defending itself against a $250,000 civil lawsuit dating back to July 2020, brought by a former employee.
Following the bankruptcy filing, Kirk MacDonald, former president of Media Central, will remain in his role as president of the company’s subsidiaries. Manos Pavlakis, David Daniels and Carolyn Wall have resigned from their positions on the company’s board, according to a press release.
The company did not respond to requests for comment from The Globe and Mail.
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