Magazine Marketing Company (MMC), the Surrey-based magazine distributor, is likely to fall into administration shortly. The distributor has contracts for more than 200 titles, including The Spectator and the humour monthly The Oldie.
MMC was put up for sale earlier this month, but in the absence of buyers even after Friday's deadline, the HSBC bank has stopped lending to the company.
MMC is reportedly unable to pay bills due to its publisher clients. It currently owes a significant amount of money to its distribution courier Downton. Its going into administration will leave hundreds of magazines stranded in storehouses with no date for delivery to retailers.
Nearly half of the distributor's clients are waiting for overdue payments and have approached rival distributors, according to a source.