This is business as usual at Source Interlink (formerly Primedia). In 2009 Primedia delisted and filed bankruptcy to absolve themselves of >1billion in debt. “This restructuring will materially reduce our interest expense and debt levels,” Source Interlink Chief Executive Officer Greg Mays, 2009
A colleague of mine was there first for their 2009 bankruptcy. Essentially, they delayed finalizing his commission structure and then simply stopped paying. When he left they owed him >50k. He, unfortunately, didn't bring the case in front of the labor board for fear of retribution.
"Source Home Entertainment LLC" was the parent company which filed for bankruptcy. Underneath that was Source Interlink International, Source Interlink Distribution. Not Source Interlink Media.
It is clear Source Interlink Media knew Source Home Entertainment would be filing for bankruptcy because they changed their name in May. Source Home Entertainment filed June 23rd. Legally these were separate businesses. As private companies it is difficult to tell much more.
This happens in tech company's as well as publishers - one large profitable multi national made its UK subsidiary bankrupt so as to avoid paying any redundancy.
Apparently there was a whole off site company meeting when they arrived they found a load of the RB2 forms on tables and where told start filling those in you don't have a Job.
In the UK if a company goes bust the government pays the statutory redundancy (up to a limit)
A colleague of mine was there first for their 2009 bankruptcy. Essentially, they delayed finalizing his commission structure and then simply stopped paying. When he left they owed him >50k. He, unfortunately, didn't bring the case in front of the labor board for fear of retribution.