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to promote civic engagement in the Philadelphia region.Publisher of The Philadelphia Inquirer & Daily News files for Chapter 11 Bankruptcy
Monday, February 23rd, 2009 at 7:21 am - by Matt Campbell. Filed under: Community, Economy.
Philadelphia Media Holdings, the parent company of The Philadelphia Inquirer and the Daily News, filed for Chapter 11 bankruptcy protection yesterday. Both papers will continue to be published, according to Brian Tierney, one of the papers’ co-owners. Tierney, who along with a team of investors bought the two papers in 2006 for $562 million dollars, says the operations remain profitable but the debt payments are just too big. Tierney wrote in an e-mail yesterday to workers, “This restructuring is focused solely on our debt, not our operations,” adding that “our operations are sound and profitable.”
The e-mail, obtained by the Associated Press, tells members to stay calm and report for work and that “the company is still in business, the papers are still publishing.” The communication tells guild members the union contract remains in full force and that workers’ wages and benefits will continue to be paid.
What do you think? Did Brian & Co. get way in over their heads in a business they knew too little about? Did they pay too much? When Brian says “our operations” are profitable, is he only talking about the Inquirer and Philly.com? What’s the future for the Daily News in all this? Do we even need two major newspapers?
Related links:
New York Times story on bankruptcy filing
Associated Press story on bankruptcy filing
Inquirer story on bankruptcy filing
Daily News story on bankruptcy filing
February 23rd, 2009 at 8:24 am
Debt repayments ARE a cost of operating. I expect (what’s left of their) good reporting will take a cut in the not-too-distant future and the downward spiral of newspapers will continue.
Philly can certainly use two major papers, but we’ve been underserved by having those two in the same house.