“… To Forgive Divine Is At Your Discretion.

During these troubled times, it looks like no one’s Recession proof as Marc Ecko’s facing the possibility of bankruptcy.

Ecko has hired investment bank Peter J. Solomon to help refinance at least $170 million in debt owed to two key business partners, sources told The Post. With lenders scarce, sources say his empire may be dismantled as he sells off assets to pay creditors. Sources said Marc Ecko’s executives and bankers alike have been lobbing phone calls to rivals, trying to unload the company’s brands in exchange for cash. The dire scenario is a far cry from a few years ago, when Marc Ecko had entertained potential offers from Jones Apparel Group and Tommy Hilfiger. At one time, both firms were weighing bids for Marc Ecko in the $500 million range, according to one source.

Regardless of whether you have $10 in your bank account or $1,000,000 people can usually find a sliver of sympathy for the individual down on their luck. It’s a little harder to do Read the rest of this entry »

Vibe is still under observation, but the prognosis got a little better. The rumor of it folding proved to be false, but not unwarranted.

Vibe magazine is cutting its paid circulation 25%, reducing its frequency to ten issues a year from twelve and merging its print and digital editorial operations, all in the magazine industry’s latest response to the twin attacks by recession and new media.

But Vibe is also departing from the standard playbook by introducing a twice-a-year newsstand-only celebrity tabloid. It plans to increase the subscription price for its flagship. And it is avoiding layoffs by adopting a four-day workweek accompanied by 10% to 15% pay cuts for its employees. The new day off, at least to start, will be Friday, though some staffing will be organized to keep the office open five days a week.

In the grand scheme of things this is a pretty good deal, since it’s better to be proactive than reactive in situations like this. Read the rest of this entry »