Want some good news? A magazine publisher and distribution company isn’t exactly folding. As for the bad news? It’s issuing pay cuts.
The Source Interlink is cutting back on salaries for parts of the company working with distribution to retail outlets, as per The New York Post.
Approximately 10 percent of the company’s work force will be impacted; that equates to 600 out of the total 6,000 employees. All officers will apparently get a 10 percent pay cut and other employees will take a reduction of five percent.
The Kroger grocery chain is one of the biggest customers for distributing publications and Source Interlink lost its distribution contract to get their magazines into its stores.
The company’s still in debt and has been negotiating to get a new long-term debt agreement with JPMorgan.