Canadian Magazine Industry News
25 July 2013,     TORONTO
What's for sale at Robert Kennedy Publishing?
 
Canusa Products Inc., doing business as Robert Kennedy Publishing, filed for bankruptcy on June 7, and its trustee Deloitte & Touche has since released more information including a preliminary list of assets for sale.

Deloitte notes that while Canusa is the publisher of five magazines, Canusa does not hold all of the brands' respective assets. Some, like the Canadian trademarks for Oxygen and MuscleMag International, belong to the Testamentary Estate of Robert Kennedy, while others, including the U.S. and Canadian trademarks for Clean Eating, are held in Tosca Reno Media Inc. (previously named Robert Kennedy Publishing Inc.), which are not covered by Canusa's bankruptcy.

"However, all of the assets related to the magazine properties are being marketed together to facilitate en bloc transaction," reads a Deloitte document. Here is Deloitte's preliminary magazine asset sale breakdown based on info provided by Canusa.

Oxygen
International distribution licenses
Print Subscription list (109,000 subscriptions)
Digital Subscription list (15,000 subscriptions)
Magazine content and copyrights
Domain name: www.oxygenmag.com
Oxygen Canadian trademark

MuscleMag International
International distribution licenses
Print Subscription list (13,000 subscriptions)
Digital Subscription list (2,000 subscriptions)
Magazine content and copyrights
Domain name: www.musclemag.com
MuscleMag Canadian trademark

Clean Eating
International distribution licenses
Print Subscription list (105,000 subscriptions)
Digital Subscription list (15,000 subscriptions)
Magazine content and copyrights
Domain name: www.cleaneatingmag.com
Clean Eating Canadian and US trademarks

Reps
International distribution licenses
Print Subscription list (12,000 subscriptions)
Digital Subscription list (4,500 subscriptions)
Magazine content and copyrights
Domain name: www.repsmag.com

American Curves
International distribution licenses
Print Subscription list (31,000 subscriptions)
Digital Subscription list (2,500 subscriptions)
Magazine content and copyrights
Domain name: www.americancurvesmagazine.com

Maximum Fitness
Maximum Fitness and Robert Kennedy’s Maximum Fitness Canadian and US Trademarks
Magazine content and copyrights

As reported by Publisher's Weekly (whose story includes more info on the company's book division assets), another preliminary Deloitte report lists several factors that contributed to the bankruptcy.
  • the illness and death of founder Robert Kennedy in April 2012
  • unfavorable industry trends for printed magazines
  • the cost of a settlement of a dispute in early 2013 with a significant advertiser
  • lower than expected renewals of subscriptions due to a difficult transition to a new subscription service provider in early 2013
  • costs related to the closure of a retail venture for MuscleMag International
  • commitment to a significant lease for a large distribution centre in Mississauga, Ont., which was significantly in excess of current corporate needs
  • significant distributions to Robert and Tosca Kennedy relative to recent cash flow and profitability
A creditor package lists unsecured claims anywhere from $1 to over $2 million. Deloitte highlights the following creditors with "significant" claims.

Employees - wages, termination and severance, with amounts to be calculated and proven by employees
Orlando Corporation - landlord, proof of claim outstanding
Quad/Graphics Inc. - printing and distribution, claiming approximately US$2.3 million
Gould Paper Corp - paper supplier, claiming approximately US$950,000
CDS Global - subscriber service provider, claiming approximately US$151,000

Not to mention approximately 218,000 subscribers who may have prepaid their subscriptions for digital or printed magazines. Deloitte says that according to Canusa’s records, these liabilities may total upwards of C$2.5 million.
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