Charlotte Observer Publisher Files for Bankruptcy
McClatchy Co. Publishing filed for bankruptcy protection last week. With Chapter 11 filing McClatchy will restructure its debts and hopes let go of its pension obligations.
Under a plan outlined in its filing to a federal bankruptcy court, close 60 percent of debt would be removed as the news organization tries to reposition for a digital future. If accepted More than 7 million shares of both publicly available and protected family-owned stock would be canceled.
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 publisher’s started in 1857 when publishing a four-page paper, post gold rush that became that Sacramento Be. McClatchy Co. publishes for several other newspapers in the Carolina`s, The Miami Herald and The Kansas City Star just to name a few.
This decision will terminate the family control of America’s second-largest local news company and enable control with creditors who have supported independent journalism. 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. This shift comes at a time of news evolution as we transform and adapt from print to digital-based media.