McClatchy Co., the second largest local newspaper publisher in the U.S. and owner of The Miami Herald, has filed for chapter 11 bankruptcy as its struggles amidst the ever-changing media landscape.
The debt-laden Sacramento, Calif.-based company made the announcement today at the same time as it revealed it had obtained a $50 million loan from asset-based lender Encina Business Credit to help it stay afloat during this period and keep all of its 30 local newsrooms, including the Kansas City Star, open. It also owns the Fort Worth Star-Telegram, The Sacramento Bee and The Charlotte Observer.
Like many of its competitors, the 163-year-old family-controlled, publicly traded publisher has struggled to keep its head above water as print readerships plummet. While it has made some progress in digitizing its brands (growing its digital-only subscriptions by almost 50 percent year-over-year), this has not been nearly enough to turn its fortunes around. In addition, staff cuts have failed to have the desired impact on the company’s finances.
It has also had a hard time meeting its pension obligations, with its pension plan assets totaling $1.39 billion, including approximately $580 million of voluntary contributions made by McClatchy. It is in negotiations with the Pension Benefit Guaranty Corp.
The debt-laden Sacramento, Calif.-based company made the announcement today at the same time as it revealed it had obtained a $50 million loan from asset-based lender Encina Business Credit to help it stay afloat during this period and keep all of its 30 local newsrooms, including the Kansas City Star, open. It also owns the Fort Worth Star-Telegram, The Sacramento Bee and The Charlotte Observer.
Like many of its competitors, the 163-year-old family-controlled, publicly traded publisher has struggled to keep its head above water as print readerships plummet. While it has made some progress in digitizing its brands (growing its digital-only subscriptions by almost 50 percent year-over-year), this has not been nearly enough to turn its fortunes around. In addition, staff cuts have failed to have the desired impact on the company’s finances.
It has also had a hard time meeting its pension obligations, with its pension plan assets totaling $1.39 billion, including approximately $580 million of voluntary contributions made by McClatchy. It is in negotiations with the Pension Benefit Guaranty Corp.
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