Monday, August 30, 2010

Ouch: Modern Luxury, bought 3 years ago for $243 million, reportedly sold for a bit more than $20 million

Modern Luxury, on the blocks since April has reportedly found a buyer, Dickey Publishing, owners of Jezebel Magazine and Atlanta Sports & Fitness Magazine. The chain of upscale, photo heavy magazines was sold of "just north of $20 million according to the NY Post, have been purchased for $243 million just three years ago.

The chain was sold by their lenders, led by General Electric Financial Services and New Star Financial. The new owners will also have to deal with debt, having brought in Macquarie Capital as part of the deal.
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"Dickey Publishing distinguished themselves in a number of respects, by placing the greatest value on Modern Luxury, our team, our brands, and each of our markets. We believe they will be a superb steward of the business going forward," said Bill Cobert, CEO of Modern Luxury in a release announcing the sale.

Berkery, Noyes & Co, LLC represented Modern Luxury in the sale, though the press release fails to mention the financial terms for obvious reasons.

Modern Luxury has been regularly releasing iPhone and iPad apps through the sale, the result of its relationship with app builder Blue Toad. The apps have all been replica editions and hence generally been down rated in iTunes.

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