Magazine distributor on verge of administration

The distributor behind magazines including The Oldie and Asian Babes is just days away from entering administration, industry insiders have said.

MMC was put up for sale earlier this month, but was unable to find a buyer by the 14 May deadline. It has since had its borrowing facility withdrawn and has not been able to meet due commitments to half of its published clients.

If it does enter administration, there is the potential for thousands of magazines and publications to be left stranded in warehouses with no potential for delivery. The company currently holds the distribution contracts for over 200 specialist and top-shelf titles.

Some clients of the company have condemned their business decisions. Paul Monaf, whose specialist pubisher, Ebcon, is owed between £50,000 and £60,000 from MMC, said he had moved his contracts for the safety of his own business.

"The ramifications of MMC going bankrupt will be widespread and publishers will bear the brunt of it,” he said.

“MMC's incompetence means a large number of specialist publishers are facing financial meltdown.”

He said he was first informed of problems on 10 May, when the company contacted him after not paying him money owed for April. The reason for the non-payment was given as “an issue with its back-office system”.

MMC was started in 1988 and by this year had grown its staff roster to 50. The combined annual cover-price turnover of the magazines it distributed exceeds £60 million.

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