Please ensure Javascript is enabled for purposes of website accessibility
Fresno Bee Publisher Files for Bankruptcy Protection
gvw_ap_news
By Associated Press
Published 4 years ago on
February 13, 2020

Share

The publisher of the Fresno Bee, Miami Herald, The Kansas City Star and dozens of other newspapers across the country has filed for bankruptcy protection.

While McClatchy and others have pushed digital operations aggressively, advertising dollars have continued to flow toward internet giants like Facebook and Google.
The newspaper industry has been devastated by changing technology that has sent the vast majority of people online in search of news. While McClatchy and others have pushed digital operations aggressively, advertising dollars have continued to flow toward internet giants like Facebook and Google.
McClatchy Co.’s 30 newsrooms, including The Charlotte Observer, The News & Observer in Raleigh, and The Star-Telegram in Fort Worth, will continue to operate as usual as the publisher reorganizes under Chapter 11 bankruptcy protection.
The publisher’s origins date to 1857 when it first began publishing a four-page paper in Sacramento, following the California Gold Rush. That paper became The Sacramento Bee.
McClatchy has received $50 million in financing from Encina Business Credit that will enable it to maintain current operations for the company, which is still based in Sacramento.
“When local media suffers in the face of industry challenges, communities suffer: polarization grows, civic connections fray and borrowing costs rise for local governments,” said CEO Craig Forman. “We are moving with speed and focus to benefit all our stakeholders and our communities.”

McClatchy Has Suffered as Readers Give up Traditional Subscriptions and Get News Online

McClatchy expects fourth-quarter revenues of $183.9 million, down 14% from a year earlier. Its 2019 revenue is anticipated to be down 12.1% from the previous year. That would mean that the publisher’s revenue will have slid for six consecutive years.
The company expects to pull its listing from the New York Stock Exchange as a publicly traded company, and go private.
McClatchy filed for bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York. Its restructuring plan needs approval from its secured lenders, bondholders and the Pension Benefit Guaranty Corp.
McClatchy has suffered as readers give up traditional subscriptions and get news online and like other publishers, it’s tried to follow them there.
Digital-only subscriptions have increased by almost 50% year over year, McClatchy said. The company has more than 200,000 digital-only subscribers and over 500,000 paid digital customer relationships.
Yet the migration to digital publications has not offset the loss of advertisers that once relied on newspapers.
The estimated total U.S. daily newspaper circulation including both print and digital in 2018 fell 8% from the prior year to 28.6 million for weekday. Sunday circulation fell 9% to 30.8 million, according to the Pew Research Center for Journalism and Media.

Even the Arrival of Moneyed Interests Can Prove Fleeting

Last year, New York Times executive editor Dean Baquet bleakly predicted the demise of “most local newspapers in America” within five years, except for ones bought by billionaires. The Washington Post and Los Angeles Times, both national publications, are thriving after being bought by billionaires. The Boston Globe, Minneapolis Star-Tribune and Las Vegas Review-Journal are among other major American newspapers that appear to have steadied themselves after being sold to local wealthy individuals.

“McClatchy remains a strong operating company with an enduring commitment to independent journalism that spans five generations of my family.” — Chairman Kevin McClatchy, the great-great grandson of the company founder, James McClatchy 
Even the arrival of moneyed interests can prove fleeting.
Two weeks ago, billionaire Warren Buffett said he was selling all of Berkshire Hathaway’s publications; 31 daily newspapers in 10 states as well as 49 paid weekly publications with digital sites. Buffett is a lifelong booster of newspapers but he has said for several years that he expects most of them to continue on their declining trajectory, save for a handful of national papers such as The New York Times and The Wall Street Journal.
“McClatchy remains a strong operating company with an enduring commitment to independent journalism that spans five generations of my family,” said Chairman Kevin McClatchy, the great-great grandson of the company founder, James McClatchy.
The company has also worked on its financials, trimming operating expenses by $186.9 million for the three-year period ended in December. It’s also paid off about $153.5 million in debt in the same period.
Forman said McClatchy doesn’t anticipate any adverse impact on qualified pension benefits for substantially all of the plan’s participants and beneficiaries.

RELATED TOPICS:

DON'T MISS

Gareth Southgate Says He Will Step Down as England Manager

DON'T MISS

At Least 70 People Killed in a Militia Attack in Western Congo

DON'T MISS

Bronny James Finishes With 2 Points, Lakers Lose to Celtics at Summer League

DON'T MISS

Trump’s Economic Plans Include Tariffs, Tax Cuts and No Taxes on Tips. Details Scarce.

DON'T MISS

5 Killed and Dozens Injured in Bangladesh in Violent Clashes Over Government Jobs Quota Scheme

DON'T MISS

Microsoft Faces UK Competition Investigation Over Hiring of AI Startup’s Founder and Key Staff

DON'T MISS

Israeli Military Says It Will Begin Drafting Ultra-Orthodox Men. That Could Rattle the Government

DON'T MISS

Dodgers’ Teoscar Hernández Wins the Home Run Derby

DON'T MISS

Border Arrests Plunge 29% in June to the Lowest of Biden’s Presidency as Asylum Halt Takes Hold

DON'T MISS

NYT: Our Reporter on Donald Trump’s V.P. Pick

UP NEXT

Local Film ‘Camp Terror’ Hits the Streaming Services

UP NEXT

Man Dies After Rescuing His 2 Children in Mississippi River

UP NEXT

Gomez Guilty of Murdering Los Hooligans Bass Player

UP NEXT

Biden Says It Was a Mistake to Say He Wanted to Put Trump in a ‘Bull’s-Eye’

UP NEXT

Smittcamp Asks Court to Drop His Lawsuit Against Controversial NW Fresno Project

UP NEXT

Measure P Arts Grants Spark Debate and a Meeting Tonight

UP NEXT

Trump Receives Enough Delegate Votes to Officially be Republicans’ Nominee

UP NEXT

13 Prime Steak Owners Get You All Yolked up at New Clovis Eatery

UP NEXT

Fresno Council Zoom Bomber Indicted on Federal Charges

UP NEXT

Fresno Actor KP Phagnasay Breaks Big Onto the Small Screen

Trump’s Economic Plans Include Tariffs, Tax Cuts and No Taxes on Tips. Details Scarce.

31 mins ago

5 Killed and Dozens Injured in Bangladesh in Violent Clashes Over Government Jobs Quota Scheme

32 mins ago

Microsoft Faces UK Competition Investigation Over Hiring of AI Startup’s Founder and Key Staff

40 mins ago

Israeli Military Says It Will Begin Drafting Ultra-Orthodox Men. That Could Rattle the Government

46 mins ago

Dodgers’ Teoscar Hernández Wins the Home Run Derby

48 mins ago

Border Arrests Plunge 29% in June to the Lowest of Biden’s Presidency as Asylum Halt Takes Hold

54 mins ago

NYT: Our Reporter on Donald Trump’s V.P. Pick

59 mins ago

LeBron James at 39 Still Is the Center of Attention for USA Basketball. That Won’t Change in Paris

1 hour ago

A Teamsters Boss Delivers Rare Speech to RNC

1 hour ago

Jack Black Ends Tenacious D Tour After Bandmate’s Trump Shooting Comment

1 hour ago

Gareth Southgate Says He Will Step Down as England Manager

After eight years, four tournaments and two finals, Gareth Southgate announced he was stepping down as England manager on Tuesday, saying it...

11 mins ago

11 mins ago

Gareth Southgate Says He Will Step Down as England Manager

19 mins ago

At Least 70 People Killed in a Militia Attack in Western Congo

23 mins ago

Bronny James Finishes With 2 Points, Lakers Lose to Celtics at Summer League

31 mins ago

Trump’s Economic Plans Include Tariffs, Tax Cuts and No Taxes on Tips. Details Scarce.

32 mins ago

5 Killed and Dozens Injured in Bangladesh in Violent Clashes Over Government Jobs Quota Scheme

40 mins ago

Microsoft Faces UK Competition Investigation Over Hiring of AI Startup’s Founder and Key Staff

46 mins ago

Israeli Military Says It Will Begin Drafting Ultra-Orthodox Men. That Could Rattle the Government

48 mins ago

Dodgers’ Teoscar Hernández Wins the Home Run Derby

MENU

CONNECT WITH US

Search

Send this to a friend