Ebony Magazine forced into involuntary bankruptcy

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BEVERLY HILLS – FEBRUARY 24: Items from the “gift bag” on display at the Ebony Magazine Oscar Party “Hollywood in Harlem” at the Crustacean Restaurant on February 24, 2005 in Beverly Hills, California. (Photo by Frederick M. Brown/Getty Images)

Ebony Magazine is facing a forced involuntary bankruptcy as lenders claim debts remain unpaid.

According to Law360 creditors of the historic Black publication are pushing for a Texas federal court to force the brand into Chapter 7 bankruptcy, a rare move but one they deem necessary.

Multiple petitions state Ebony Media Holdings LLC “is generally not paying its debts as they become due, unless they are the subject of a bona fide dispute as to liability or amount.”

Three companies are leading the charge for the bankruptcy filing. Houston-based Parkview Capital Credit claims to be owed $11.9 million, California-based David M. Abner & Associates claim a debt of $9,400 and New York-based Plum Studio claims to be owed $2,300.

Earlier this month, the magazine replaced CEO Willard Jackson after a financial investigation. TheGrio reported that the board of directors removed Jackson from power on July 2, 2020.

In a statement released on their website Ebony Magazine writes “In 1945 EBONY was launched to create visibility for Black Americans, who were invisible in the white press at the time — unless they committed crimes. Seventy-five years later, we are proud to continue to bring an authoritative perspective on the multidimensional Black community and serve as a catalyst for reflection and progression.”