June 23--BONITA SPRINGS -- A limited liability company tied to a Bonita Springs-based magazine publisher and distributor has filed for bankruptcy protection.
Source Home Entertainment LLC filed for Chapter 11 bankruptcy in the U.S. District of Delaware on Monday, following a decision last month to halt its distribution operations.
On May 30, Source Interlink Distribution, an affiliate, announced it was laying off more than 5,000 employees, including 165 in Lee County.
In its filing, Source Home listed assets of $205 million and debts of $290 million, as of March 31.
In a filing, the company's chief restructuring officer, Stephen Dube, said: "The continuing fundamental technological shift away from traditional consumption of print media toward online magazines and e-book readers, as well as the continuing overhang of the economic downturn, created a difficult operating environment for distributors of print media."
The company, he said, was also hurt by distribution agreements that required it to purchase more magazines than could be sold at retail and that made processing return credits costly, which drained profits.
Return to naplesnews.com later today for more on this developing story
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