Magazine Is Sold to Its Publisher

The publisher of Orange Coast Magazine has purchased the publication from the previous owner, a former real estate developer whose financial problems had forced him to file for personal Chapter 11 reorganization.

Ruth Ko, who has managed the trendy magazine for the past seven years, won approval to buy out partner Wayne Stewart’s stake in U.S. Bankruptcy Court. The sale was approved Tuesday by U.S. Bankruptcy Judge John Ryan.

“It’s very exciting,” Ko said Wednesday. “It’s like a renewed zest and a new challenge.”

Attorney Richard Marshack, court-appointed trustee for Stewart’s reorganization, said Ko bought Stewart’s 83.2% controlling interest in Orange Coast Newport Life Inc. for $650,000.

Marshack said Stewart’s other personal assets are valued at about $9 million. It was not known how much of Stewart’s assets would ultimately be sold off, but Marshack said, “There should be a substantial return to creditors.”

Stewart could not be reached Wednesday for comment.

Ko said she made the decision to buy the slick, monthly lifestyle magazine in February and has been seeking court approval to purchase Stewart’s interest in the company. The new name for the publication company is Orange Coast Communications, and the magazine will keep its name.

Ko, who joined the magazine 16 years ago as an advertising sales representative, said that although Stewart is in Chapter 11 bankruptcy, the magazine is not.

“The magazine has been healthy,” she said, although she acknowledged that ad sales have been tough during the recession, as at other publications.

Ko said there will be no “visible changes” in either the format of the magazine or its editorial content. “I like the direction we are going. We’re going to roll up our sleeves and get to work.”