Thursday, February 13, 2020
NEWSFLASH!!! SHOCK?!? KANSAS CITY STAR PARENT COMPANY McCLATCHY FINALLY FILES FOR BANKRUPTCY!!!
Very much like our crush on hottie Gemma, this dead-tree inevitability has been a long time in the making . . .
With a special thanks to about a dozen readers who send us word at around 5 in the AM, here's a quick look at what the MSM is saying and the elusive promise that "digital" will save the company when it hasn't managed to turn their fortunes around so far.
CNN: Newspaper chain McClatchy files for bankruptcy
McClatchy D.C. - McClatchy files bankruptcy to shed costs of print legacy and speed shift to digital
The Hill: McClatchy, nation's second-largest newspaper company, files for bankruptcy
"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."
THIS ISN'T GOOD NEWS & DOESN'T SIGNAL A TURNAROUND, INSTEAD LOOK FOR MORE NEWSPAPER LAYOFFS AS CORPORATE RAIDERS MERCILESSLY CUT COSTS!!!
There's a myth put out there by old school newsies that the corporate structure is dragging the local paper down -- That's pure spin from people who don't understand any business and/or their own. Without the debt that McClatchy has suffered, The Star would've been toast YEARS ago and never would have been to hang on to pensions and other obligations for this long. Finally, their money losing operation is now forced to pay up OR, at the very least, account for their FAIL.
And so . . .
Imagining terms like "speed shift" is nice but it's just another euphemism for "firings" as this paper looks to get even skinnier as 2020 moves forward.
Developing . . .