Once known as "the bible of hip-hop" The Source magazine was a monthly magazine dedicated to hip-hop music and it's culture.
Once known as "the bible of hip-hop" The Source magazine was a monthly magazine dedicated to hip-hop music and it's culture. After struggling for sometime now, The Source Magazine (Source Entertainment/Source Enterprises), whose April cover featured Three 6 Mafia, has filed for Chapter 11 bankruptcy in U.S. Bankruptcy Court in Manhattan. The causes of the bankruptcy is stated to be because of dishonest business practices by former members of the team and advertisers fleeing as a result of this.
President and CEO of Source Entertainment Jeremy Miller, stated the company was struggling to recover from the misuse of funds which occurred several years ago and the slew of bad publicity that accompanied it caused by past managers.
In the court papers filed, Jeremy Miller stated, "The company has been damaged by the wrongful business practices of the companies' former management."
The former founders David Mays and president Raymond "Benzino" Scott were released from the magazine in 2006 after failing to keep advertisers to support the magazine. As a result of this, The Source sales fell and a number of unjustifiable articles were published to up the sales of the magazine on artists such as Eminem and 50 Cent, bad checks were issued to a number of companies including employees and many subscribers' subscriptions halted. The company is stated to owe over a half million dollars to creditors.
LP Harrison III, an attorney for Source, said the company plans to "exit bankruptcy as a reorganized entity."