VIBE Magazine to close immediately!

Vibe, one of the nation’s leading popular music magazines, is closing immediately, a spokeswoman said Tuesday.

Word was broken early this afternoon by the Web site dailyfinance.com and spread to other music and media news sites. The spokeswoman, Tracy Nguyen, said the Vibe staff would be formally notified in a meeting at 2 p.m. She said she did not know how many people would be laid off as a result of the closure.

(Eminem featured on last offical printed cover)

The closure of Vibe leaves just one large-circulation music magazine, The Source, focusing on hip-hop and R&B. The Source has had its own troubles, going through a bankruptcy and emerging under new ownership last year. A rock-focused magazine, Blender, folded last year.

In a memo to staff members announcing the closure, Steve Aaron, chief of the Vibe Media Group, wrote that for months, the company tried in vain to either find new investors or “to restructure the huge debt on our small company.”

“The print advertising collapse hit Vibe hard, especially as key ad categories like automotive and fashion, which represented the bulk of our top 10 advertisers, have stopped advertising or gone out of business,” he wrote.

The musician Quincy Jones and the company then called Time Warner created Vibe in 1992. The Wicks Group, a private equity firm, bought it in 2006. Vibe reported circulation of 818,000 in the second half of last year, a healthy figure, but like many magazines it suffered from falling advertising. It announced in February that in July, it would cut its rate base — the circulation promised to advertisers — from 800,000 to 600,000.

Here is the final cover of VIBE magazine, and from what I'm told, it will not be available on newsstands. It kinda sucks for them huh? LOL Really would have been nice to put MJ on cover. But as you can see this was an immediate thing.

Here are the statements from Vibe's editor, and a staff memo from the CEO. From editor Danyel Smith:

On behalf the VIBE CONTENT staff (the best in this business), it is with great sadness, and with heads held high, that we leave the building today. We were assigning and editing a Michael Jackson tribute issue when we got the news. It's a tragic week in overall, but as the doors of VIBE Media Group close, on the eve of the magazine's sixteenth anniversary, it's a sad day for music, for hip hop in particular, and for the millions of readers and users who have loved and who continue to love the VIBE brand. We thank you, we have served you with joy, pride and excellence, and we will miss you.

Danyel Smith
the former Chief Content Officer VIBE Media Group
& Editor in Chief, VIBE

Staff memo from Vibe Media CEO Steve Aaron:

Dear VIBE Team:

It is with a heavy heart that I share some tough news, VMG is closing down effective today, June 30th.

It's been an 16 incredible years since VIBE's inception. There are very few magazines with the richness of history and breadth of talented visionaries who created the powerful lens in which VIBE viewed and shaped urban music and culture.

Ever since I first set foot in this courageous company, I've regarded myself as incredibly fortunate to be be involved with this remarkable brand and group of individuals whose performance has never been nothing short of outstanding. We finished 2008 in an improved position versus the prior year, and accomplished so much, including:

* Editorial Awards
* Editorial transformation into content dept
* New Ad accounts being broken
* The Most Mag Launch
* Award winning re-design
* Profitable digital operation
* VIBE.com growth and improvements and programs such as Best Rapper Ever, #1 Stan, etc
* Mobile VIBE launch
* Micro-site development Mostmag.com to start off.
* V Sessions
* Improved PR coverage

Unfortunately, over the last several months, a confluence of events has obviously posed VMG to exceedingly serious challenges.

* The collapse of the capital markets has impacted us greatly. Over the past several months, we have actively pursued investment resources while working intensively with our bank to find a solution. But the deal market right now remains very poor and at the end of the day, the lack of investment resources to restructure the huge debt on our small company has made this outcome become a reality.
* The print advertising collapse hit VIBE hard, especially as key ad categories like automotive and fashion, which represented the bulk of our top 10 advertisers, have stopped advertising or gone out of business. It's also unfortunate that in a recession many companies reduce the multi-cultural campaigns. These facts, coupled with the continuing decline of the music industry not to mention the newsstand wholesaler consolidation in early 2009 all negatively impacted our business in a significant way.
* The relentless economic situation has depressed our growth initiatives on the digital front. To be clear, VMG has made significant improvement in this part of our business, but not at the accelerated pace required to offset the devastating effects of the most severe recession in our lifetime and the accompanying print losses.

I want to thank you all for your hard work and commitment, and for all of the adventures along the way. I'll miss this place a lot, but I'll miss you all and the magic you create.

Vibe will be remembered as a shockingly brilliant content company that everyone can be proud of and I look forward with great excitement to all of future endeavors you all pursue.

With great affection and respect –

Steve Aaron

former CEO of VIBE Media Group