Interep to Shut Down

More grim news for the radio business. Interep, one of two national radio rep firms, will close down sometime later this year, relinquishing the national rep business to Katz Media. On Friday, Interep filed a motion with the U.S. Bankruptcy Court for the Southern District of New York to convert its bankruptcy Chapter 11 status to Chapter 7 liquidation in order to pay off the company’s debtors.

Interep has been in financial trouble for the past three years. Forced to deregister with the Securities and Exchange Commission, Interep’s investors compelled the firm to bring in new managment, resulting in the hiring of David Kennedy as CEO in April 2007 to try and breath new life into the faltering rep firm. Along the way, Interep lost a number of representation contracts with major groups such as Radio One and Cumulus, reducing its share of business to about 35 percent.

CBS, which is currently repped by Interep, said in a statement it was looking at alternative national sales representation strategies and will have an announcement soon.

Interep employees are already shopping their resumes.

The rep firm did not immediately provide comment.