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Horse racing magazine files for Chapter 7 bankruptcy

Since the advent of the Internet, traditional publications, such as magazines and newspapers, have been suffering financially. It is challenging for these types of businesses to compete with online publications, which have the advantage of low production costs. This has caused many traditional publications in Texas and elsewhere to go out of business. One of the latest magazines to fold is the Thoroughbred Times, which recently filed for Chapter 7 bankruptcy protection.

The magazine reported on all types of topics related to racing and breeding. The publication provided full-time employment to 27 individuals. The company officially ended its operations in mid-September. The owner of the magazine stated that the company had been struggling financially for a significant amount of time, despite the staff's hard work and commitment.

Experts in the thoroughbred industry claim that most of those in the industry do not advertise in trade magazines anymore and are instead opting to advertise on the Internet. Along with the ailing publications industry, the thoroughbred industry was also hit hard by the recession. This caused the magazine to fall behind on paying its debts, resulting in the decision to confront those problems in orderly fashion and under the protection of the bankruptcy court.

The magazine's assets include a library, photography archives, and various publications. Some of these publications include books, a directory on horses, and a horse buyer's guide. In a Chapter 7 bankruptcy, the trustee will liquidate all of these assets as quickly as possible, with the proceeds applied to outstanding debt. When individuals or businesses in Texas or elsewhere file for bankruptcy liquidation, the subsequent discharge granted by the court will open up the opportunity to rebuild credit and create a path to a new beginning.

Source: Kentucky.com, "The Thoroughbred Times shuts down," Valarie Honeycutt Spears, Sept. 15, 2012

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