The parent company that controls Now Magazine has voluntarily filed for bankruptcy, stating it has $2.25-million in liabilities and just $352 in total assets.
Toronto-based publishing company Media Central Corp. Inc. FLYY-CN, 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 the debtholders after it defaulted 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 will continue publication as usual, the news and entertainment magazine’s acting editor, Radheyan Simonpillai, posted on Twitter at the beginning of March that Now was scaling back its print publications as a cost-saving measure as it transitions its audience online.
The stands were empty this morning. Here's why. pic.twitter.com/tOQ8krY63j
— Now Magazine (@Nowtoronto) March 10, 2022
In 2019, the company launched digital cannabis publication CannCentral, and the following year opened eCentralSports, an e-gaming media outlet. Media Central did not say whether the two websites would continue operating.
Media Central’s voluntary bankruptcy follows a series of leadership and other changes at the company.
On March 9, Media Central announced chief financial officer Carmelo Marrelli had resigned effective Jan. 25, after less than a year in the role. In the same release 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 civil claim for $250,000 dating back to July, 2020, brought by a former employee.
Following the bankruptcy filing, Kirk MacDonald, formerly 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 of directors, according to a news release.
The company did not respond to requests for comment from The Globe and Mail.
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Irene Galea