Just when we thought there was no hope for urban publications, a company has been in the works of buying Vibe out of debt.
When CapitolSource, a major debt holder, announced the shutdown of Vibe in June, it wasn’t even a mere thought that the company would recover. But a former publisher of the magazine Leonard Burnett Jr. and the owners of Uptown Magazine have reached a deal with CapitolSource to buy out the Vibe Brand:
Wicks Group paid about $35 million, with financing from CapitalSource, to buy Vibe in 2006. And since the magazine’s shutdown, executives close to the matter said, CapitalSource has been trying to recoup some of the unrecovered debt by accepting offers from potential buyers.
It seems that those efforts have finally paid off because a deal has been reached between Uptown and its equity banker along with CapitolSource to buy back Vibe. We’re so happy Vibe is back on the scene because leaving the urban representation up to King and Black Men’s mag was not an option.