Source Interlink failed to pay Time Inc monies owed in access of 7 million dollars. Time Inc pulled their magazines from Source and sent them to another large distributor The News Group. That left Source unable to maintain operations and they threw in the towel (though it sounds like they were not able to pay for things so were already crumbling). Source had 6000 employees.
That leaves only two large magazine distributors in the U.S., The News Group and Hudson News, neither of which I suspect will be around five years from now. There were hundreds at one point, not as large as these, but large enough to sell the magazines.
Magazines are just not as read with the internet anymore. Papers either.
Full article over at ICV2.
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