McClatchy to Declare Bankruptcy?

A Los Angeles Times business section column on the bankruptcy filing. Column: A newspaper company's bankruptcy stirs fears about the death of local news

 

... yet the CEO will continue to get a five-figure housing allowance.

... yet the executives still get bonuses ... for what? Whacking more people? For doing a crap job?

... yet an outgoing VP got a two-installment payment of $750K within 60 days of a round of cuts years ago.

McClatchy has been grossly mismanaging the books for years. But give that story some credit ... they backtracked to McClatchy's $4.5B purchase price of K-R. Then the economy tanked. Oops.

Gambled. Lost. But, as usual, the people making the gambles get bigger bonuses, while the rank-and-file trying to make it work get the gate.

 

Is this as bad as Lee and Mary Junck?

 

You know, if I were a gazillionaire running for President, I might consider using a small chunk of my fortune to buy this chain at bankruptcy sale prices and thus be considered a civic hero in several vote-rich communities.

 

Pretty close. Junck has, of course, been compensated well by Lee as the company dumps people at an alarming pace.

Robyn Tomlin of The News & Observer tries to calm the Triangle readership with the following:

https://www.newsobserver.com/news/business/article240308906.html

While the bankruptcy filing this week has no effective or immediate impact on our staff, our readers or relationships with our advertisers, it is important to note that there’s a lot at stake here.

Poor use of "impact" ... and what staff is there left to "impact," anyway? Nice try.

 

How large is the staff at the Raleigh and Charlotte papers?

 

And then he could order them not to investigate his campaign. It's a win-win!

 

That’s about what I figured.

 

In sports, we have six reporters, one columnist and two editors based in Raleigh. We have five sports reporters, one columnist and one editor based in Charlotte (yours truly), plus two open reporter spots we're still filling -- including second Panthers beat reporter.

 

I wish him luck, but not holding my breath.
https://www.sacbee.com/news/local/article240888156.html

 

What a great person. From what I can tell, that woebegone chain, McClutcheon, has 2-4 very good newspapers/websites and those organizations would be smart to separate from that woebegone chain. That mayor is a hero.

 

Will they come up with enough money for McClatchy to pay off that Knight-Ridder bill that has doomed them since the purchase more than a decade ago? If so, will there be enough operating capital to remain solvent?

Doubtful. But I suppose we can all hope otherwise.