Modern Luxury publishes several lifestyle magazines for US cities. It reportedly holds a $120m debt and failed to make the $15m yearly payments. The media house executives ousted Kong and replaced him with William Cobert, CEO of Ebitda Media. His brother, Stephen, will continue to remain with the company in his role as publisher.
Kong owns 40 per cent of Modern Luxury Media. The remaining 60 per cent stake was sold to investors led by Clarity Partners in 2007. Expansion and poor growth due to recession may have led to Kong ouster, says the Post.
In Chicago, the media house's lifestyle publication 'CS' faced severe competition from the Michigan Avenue magazine.
The publishing group expanded its print from a single magazine Chicago Social to over 12 city publications in 17 years.