6 ms·

Publisher Closure Puts 2600 in Limbo

107 points by yry4345 12y ago

2close4comfort 12y ago
Now this is terrible and with HOPE around the corner even worse!
nav1 12y ago
Previous discussion: https://news.ycombinator.com/item?id=7958815 https://news.ycombinator.com/item?id=7958815 (it's still on the front page)
- AJ007 12y ago
  I'll keep voting any story about 2600 up. Unfortunately it looks like the magazine & distribution companies legally were completely separate and they just kept similar names for branding. Other companies in their bankruptcy filing are owed millions to tens of millions.
  - tombrossman 12y ago
    Worth noting that those other companies owed far more also have significantly more resources and assets then 2600. Adjusted for size, it is a terrible blow for them.
    - hga 12y ago
      Indeed. On the other hand, if 2600, not to mention the other small fry publishers, can survive the blow, they can essentially free ride on the legal efforts of the big fish in their creditor class. There's enough money at stake that Time Warner et. al. will expend plenty of effort, if they perceive there will be a sufficient payoff ("can't get blood out of a stone", sometimes the best you can do is force a Chapter 7 liquidation and get a few pennies on the dollar for your efforts).
xxdesmus 12y ago
Operation shame TEN: The Enthusiast Network on every social network we can find? Might work.
- pvarangot 12y ago
  It's what 2600 is doing, why do you think the are linking them that much in an article talking bad about them? Sadly the TEN brand doesn't exist for the average consumer, only their magazine names do. This is pretty common in the magazine business.
- larrys 12y ago
  "Might work." Not going to work and it can't work. If the strategy was to put the company in bankruptcy then they can't pay any debts out of bankruptcy period. It wouldn't be legal. As a side note whatever chance you might have to getting money out of a bankrupt company on the sly (say they create a PO for some other goods and services to get you the money say it's your brother in law etc.) would never ever happen for obvious reason because of all the publicity.
  - hga 12y ago
    Indeed. E.g. they immediately had to file a petition "to pay claims of employees": http://chapter11cases.com/2014/06/24/source-home-entertainment-llc-2014-bankruptcy-new-filing-alert-motion-for-authority-to-pay-claims-of-employees/ http://chapter11cases.com/2014/06/24/source-home-entertainme... I've read elsewhere over 5,000 were laid off, and they have less than 200 left. This would be to pay what's due to the former, and/or continue to pay the latter, so the company doesn't just shut down now, a worst case for everyone.
wpietri 12y ago
The most exciting part for me: you can subscribe to getting digital copies of 2600 via Amazon: http://www.amazon.com/2600-Magazine-The-Hacker-Quarterly/dp/B004GB1WF6/2600magazi-20 http://www.amazon.com/2600-Magazine-The-Hacker-Quarterly/dp/...
- skorgu 12y ago
  Heck yes. 2600 is something I'd always considered subscribing to but never quite got around to given the wild swings in article quality. Digitally subscribing is a much easier sell for me, plus no more pieces of paper clogging up my apartment.
- profquail 12y ago
  2600 subscriptions are also available through Google Play: https://play.google.com/store/newsstand/details/2600_The_Hacker_Quarterly?id=CAow1KqPAw https://play.google.com/store/newsstand/details/2600_The_Hac...
  - laacz 12y ago
    As a person not from US or any other large country, I keep discovering new products we do not have access to. Google Play Newsstand is a new addition to the list :)
- twentytwo 12y ago
  Pretty disappointing that there's no DRM free digital subscription. Amazon, Google and Zinio are the only options. They do have annual volumes DRM free, but I'd rather get the quarterly...
mathetic 12y ago
This is effectively a hit order that doesn't make 2600 liable in any way. I should be outraged by this cunning strategy but I guess corporations exploiting legal loop holes to do dirty business irritates me more.
- tombrossman 12y ago
  A 'hit order'? Not sure what that means, especially from the completely reasonable tone of the article. As you say it's the business getting dirty here, not hackers.
JoeAltmaier 12y ago
If a judge permitted bankruptcy, I don't imagine there's much hope of recovering anything. Shaming isn't a legal maneuver, and accountants have a thick skin.
- sharth 12y ago
  I imagine that 2600 would like the assets of "The Enthusiast Network" to be included in that bankruptcy proceeding.
- hga 12y ago
  I'm pretty sure the judge doesn't have much choice but to accept a voluntary filing for Chapter 11 reorganization as long as the company really does have debts greater than it can handle going forward. That doesn't mean. however, mean the judge has to accept the company's proposed plan for continued operations, creditors can submit their own, can even take over the company, and he can for example reverse recent asset transfers. The company was split into these pieces last October (http://www.hispanicbusiness.com/2014/6/24/source_interlink_company_files_for_bankruptcy.htm http://www.hispanicbusiness.com/2014/6/24/source_interlink_c...), that may be recent enough if they're trying to play these sorts of games. The biggest problem for 2600 would seem to be the "limbo" part: all collection efforts are stayed while this gets hashed out---the whole reason for Chapter 11 reorganization is to try to do something less destructive than a liquidation---so whatever money 2600 will get from this process won't be arriving any time soon. However Chapter 11 doesn't mean the company can simply stiff creditors like 2600, in fact the prospects for the creditors should by definition be better than for a Chapter 7 liquidation.
- stox 12y ago
  It depends, if the companies were split with the knowledge that one would go into bankruptcy, the judge could find there was a fraudulent conveyance of assets. This would invalidate the split, and allow access to the assets of the surviving entity by the creditors.
enraged_camel 12y ago
>>Instead, we're hearing reports that only the part of the company that owes us money will be filing for bankruptcy, leaving the other part free to keep operating. This is corporate logic we refuse to accept - the two entities shared the same name until things went sour - they are most definitely related and we hold them fully accountable. Welcome to America, where corporations are people when it is convenient (e.g. when they want to get their favorite politicians elected), but can restructure themselves to avoid paying their debt when they fuck up big time. Maybe I should borrow a shitload of money from a bank, and then cut off my hand and say to the bank, "well, it was actually my hand that owed you money. The rest of my body doesn't owe you anything."
skram 12y ago
In case it isn't obvious.. the #1 way to support 2600 is to subscribe (be it for the print or online version) and keep buying merchandise like the calendar, mugs, etc. http://store.2600.com/ http://store.2600.com/ [disclosure: 2600 is not my full time job but I am on the magazine and web teams]
Shivetya 12y ago
oh, TEN, the same people who recently bought Automobile magazine and ensured that many of us would never renew because they fired the people we liked, that TEN. Best of luck.

107 points by yry4345 12y ago

Now this is terrible and with HOPE around the corner even worse!

nav1 12y ago

Previous discussion: https://news.ycombinator.com/item?id=7958815 https://news.ycombinator.com/item?id=7958815 (it's still on the front page)

AJ007 12y ago
I'll keep voting any story about 2600 up. Unfortunately it looks like the magazine & distribution companies legally were completely separate and they just kept similar names for branding. Other companies in their bankruptcy filing are owed millions to tens of millions.
- tombrossman 12y ago
  Worth noting that those other companies owed far more also have significantly more resources and assets then 2600. Adjusted for size, it is a terrible blow for them.
  - hga 12y ago
    Indeed. On the other hand, if 2600, not to mention the other small fry publishers, can survive the blow, they can essentially free ride on the legal efforts of the big fish in their creditor class. There's enough money at stake that Time Warner et. al. will expend plenty of effort, if they perceive there will be a sufficient payoff ("can't get blood out of a stone", sometimes the best you can do is force a Chapter 7 liquidation and get a few pennies on the dollar for your efforts).

xxdesmus 12y ago

Operation shame TEN: The Enthusiast Network on every social network we can find? Might work.

pvarangot 12y ago
It's what 2600 is doing, why do you think the are linking them that much in an article talking bad about them? Sadly the TEN brand doesn't exist for the average consumer, only their magazine names do. This is pretty common in the magazine business.
larrys 12y ago
"Might work." Not going to work and it can't work. If the strategy was to put the company in bankruptcy then they can't pay any debts out of bankruptcy period. It wouldn't be legal. As a side note whatever chance you might have to getting money out of a bankrupt company on the sly (say they create a PO for some other goods and services to get you the money say it's your brother in law etc.) would never ever happen for obvious reason because of all the publicity.
- hga 12y ago
  Indeed. E.g. they immediately had to file a petition "to pay claims of employees": http://chapter11cases.com/2014/06/24/source-home-entertainment-llc-2014-bankruptcy-new-filing-alert-motion-for-authority-to-pay-claims-of-employees/ http://chapter11cases.com/2014/06/24/source-home-entertainme... I've read elsewhere over 5,000 were laid off, and they have less than 200 left. This would be to pay what's due to the former, and/or continue to pay the latter, so the company doesn't just shut down now, a worst case for everyone.

wpietri 12y ago

The most exciting part for me: you can subscribe to getting digital copies of 2600 via Amazon: http://www.amazon.com/2600-Magazine-The-Hacker-Quarterly/dp/B004GB1WF6/2600magazi-20 http://www.amazon.com/2600-Magazine-The-Hacker-Quarterly/dp/...

skorgu 12y ago
Heck yes. 2600 is something I'd always considered subscribing to but never quite got around to given the wild swings in article quality. Digitally subscribing is a much easier sell for me, plus no more pieces of paper clogging up my apartment.
profquail 12y ago
2600 subscriptions are also available through Google Play: https://play.google.com/store/newsstand/details/2600_The_Hacker_Quarterly?id=CAow1KqPAw https://play.google.com/store/newsstand/details/2600_The_Hac...
- laacz 12y ago
  As a person not from US or any other large country, I keep discovering new products we do not have access to. Google Play Newsstand is a new addition to the list :)
twentytwo 12y ago
Pretty disappointing that there's no DRM free digital subscription. Amazon, Google and Zinio are the only options. They do have annual volumes DRM free, but I'd rather get the quarterly...

mathetic 12y ago

This is effectively a hit order that doesn't make 2600 liable in any way. I should be outraged by this cunning strategy but I guess corporations exploiting legal loop holes to do dirty business irritates me more.

tombrossman 12y ago
A 'hit order'? Not sure what that means, especially from the completely reasonable tone of the article. As you say it's the business getting dirty here, not hackers.

JoeAltmaier 12y ago

If a judge permitted bankruptcy, I don't imagine there's much hope of recovering anything. Shaming isn't a legal maneuver, and accountants have a thick skin.

sharth 12y ago
I imagine that 2600 would like the assets of "The Enthusiast Network" to be included in that bankruptcy proceeding.
hga 12y ago
I'm pretty sure the judge doesn't have much choice but to accept a voluntary filing for Chapter 11 reorganization as long as the company really does have debts greater than it can handle going forward. That doesn't mean. however, mean the judge has to accept the company's proposed plan for continued operations, creditors can submit their own, can even take over the company, and he can for example reverse recent asset transfers. The company was split into these pieces last October (http://www.hispanicbusiness.com/2014/6/24/source_interlink_company_files_for_bankruptcy.htm http://www.hispanicbusiness.com/2014/6/24/source_interlink_c...), that may be recent enough if they're trying to play these sorts of games. The biggest problem for 2600 would seem to be the "limbo" part: all collection efforts are stayed while this gets hashed out---the whole reason for Chapter 11 reorganization is to try to do something less destructive than a liquidation---so whatever money 2600 will get from this process won't be arriving any time soon. However Chapter 11 doesn't mean the company can simply stiff creditors like 2600, in fact the prospects for the creditors should by definition be better than for a Chapter 7 liquidation.
stox 12y ago
It depends, if the companies were split with the knowledge that one would go into bankruptcy, the judge could find there was a fraudulent conveyance of assets. This would invalidate the split, and allow access to the assets of the surviving entity by the creditors.

enraged_camel 12y ago

>>Instead, we're hearing reports that only the part of the company that owes us money will be filing for bankruptcy, leaving the other part free to keep operating. This is corporate logic we refuse to accept - the two entities shared the same name until things went sour - they are most definitely related and we hold them fully accountable. Welcome to America, where corporations are people when it is convenient (e.g. when they want to get their favorite politicians elected), but can restructure themselves to avoid paying their debt when they fuck up big time. Maybe I should borrow a shitload of money from a bank, and then cut off my hand and say to the bank, "well, it was actually my hand that owed you money. The rest of my body doesn't owe you anything."

skram 12y ago

In case it isn't obvious.. the #1 way to support 2600 is to subscribe (be it for the print or online version) and keep buying merchandise like the calendar, mugs, etc. http://store.2600.com/ http://store.2600.com/ [disclosure: 2600 is not my full time job but I am on the magazine and web teams]

Shivetya 12y ago

oh, TEN, the same people who recently bought Automobile magazine and ensured that many of us would never renew because they fired the people we liked, that TEN. Best of luck.