30 Circulators Laid Off By Source Interlink’s Enthusiast Media in LA
The former Primedia Enthusiast Media, acquired last week by magazine distributor Source Interlink, is shutting down its circulation department in Los Angeles and laying off the 30 employees who work there.
The move comes because the company is consolidating circulation efforts in New York City, according to Steve Aster, SVP, consumer marketing, at the company, now renamed Enthusiast Media.
The move is effective July 27, and was planned prior to the acquisition, Aster said. "We had this new organization idea in place for a while with the goal of consolidating what were two subscription departments into one group to better execute new-program development," says Aster. "That’s it, plain and simple."
It is unclear whether other consolidations may be under consideration by Source Interlink. "During its investor call last week, company management noted that it would be premature to speculate about or discuss integration of the companies at this early juncture," according to a company spokesperson.
Source Interlink announced last week that it had acquired Enthusiast Media, which includes 70 special interest magazines and 90 associated Web sites, for $1.2 billion in cash, sparking concern among circulators about the company owning magazines and controlling the newsstand supply chain simultaneously.
Source also announced an agreement earlier this month to be the exclusive distributor to the Borders Book store chain.