Divine Using Publishers' Money To Pay Operating Expenses
from the ooops dept
Divine Inc., the owners of Rowecom, an online magazine subscription service has apparently been signing up people for subscriptions, but instead of paying the magazine publishers the money they’re owed – using that money to fund operations. That is, generally speaking, a bit of a no-no. Rowecom has now told the publishers, by the way, that it can’t afford to pay them for the subscriptions they sold on their behalf. This appears to be illegal in any number of ways, though, Divine is trying to avoid the mess by selling Rowecom off to another company. However, the article suggests that the legal mess could lead to the end of Divine.
