Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
Latest Breaking News
General Discussion
The DU Lounge
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsMcClatchy files bankruptcy to shed costs of print legacy and speed shift to digital
https://www.mcclatchydc.com/news/nation-world/national/article240139933.html
McClatchy Co. filed for bankruptcy Thursday, a move that will end family control of Americas second largest local news company and hand it to creditors who have expressed support for independent journalism.
The Chapter 11 filing will allow McClatchy to restructure its debts and, it hopes, shed much of its pension obligations. Under a plan outlined in its filing to a federal bankruptcy court, about 60 percent of its debt would be eliminated as the news organization tries to reposition for a digital future.
The likely new owners, if the court accepts the plan, would be led by hedge fund Chatham Asset Management LLC. They would operate McClatchy as a privately held company. More than 7 million shares of both publicly available and protected family-owned stock would be canceled.
While this is obviously a sad milestone after 163 years of family control, McClatchy remains a strong operating company and committed to essential local news and information, said Kevin McClatchy, chairman of the company that has carried his family name since the days of the California Gold Rush. While we tried hard to avoid this step, theres no question that the scale of our 75-year-old pension plan with 10 pensioners for every single active employee is a reflection of another economic era.
</snip>
McClatchy Co. filed for bankruptcy Thursday, a move that will end family control of Americas second largest local news company and hand it to creditors who have expressed support for independent journalism.
The Chapter 11 filing will allow McClatchy to restructure its debts and, it hopes, shed much of its pension obligations. Under a plan outlined in its filing to a federal bankruptcy court, about 60 percent of its debt would be eliminated as the news organization tries to reposition for a digital future.
The likely new owners, if the court accepts the plan, would be led by hedge fund Chatham Asset Management LLC. They would operate McClatchy as a privately held company. More than 7 million shares of both publicly available and protected family-owned stock would be canceled.
While this is obviously a sad milestone after 163 years of family control, McClatchy remains a strong operating company and committed to essential local news and information, said Kevin McClatchy, chairman of the company that has carried his family name since the days of the California Gold Rush. While we tried hard to avoid this step, theres no question that the scale of our 75-year-old pension plan with 10 pensioners for every single active employee is a reflection of another economic era.
</snip>
"...shed costs of print legacy" is shorthand for firing any press room employees left (and maybe eff with their pensions?).
InfoView thread info, including edit history
TrashPut this thread in your Trash Can (My DU » Trash Can)
BookmarkAdd this thread to your Bookmarks (My DU » Bookmarks)
2 replies, 504 views
ShareGet links to this post and/or share on social media
AlertAlert this post for a rule violation
PowersThere are no powers you can use on this post
EditCannot edit other people's posts
ReplyReply to this post
EditCannot edit other people's posts
Rec (7)
ReplyReply to this post
2 replies
= new reply since forum marked as read
Highlight:
NoneDon't highlight anything
5 newestHighlight 5 most recent replies
McClatchy files bankruptcy to shed costs of print legacy and speed shift to digital (Original Post)
Dennis Donovan
Feb 2020
OP
They're a reliable news org - their reporting during Bush 2 was essential reading
Dennis Donovan
Feb 2020
#2
Sherman A1
(38,958 posts)1. Buzzards
I really like the mention of them remaining a strong operating company as they file bankruptcy to screw over their workers.
Dennis Donovan
(18,770 posts)2. They're a reliable news org - their reporting during Bush 2 was essential reading
But, like with any large corporate entity, the "legacy" associated with those costs doesn't mean "lifelong, dedicated employees", but mere $$$ in their ledger that can be excised.