Edited by: TJVNews.com
During the last decade, newspapers and print publications of all sizes and demographics have encountered tremendous financial challenges and as a result, many have shuttered their doors on a permanent basis; opting for digital distribution of the news.
According to a recent report in the New York Post, the new owner of the New York Daily News is considering a possible Chapter 11 bankruptcy for the paper, according to a source who spoke to Media Ink.
The Daily News is currently owned by Aldon Global Capital, a hedge fund. A spokesman for the embattled New York tabloid said the notion of a bankruptcy filing is an unsubstantiated rumor, according to the New York Post report. The spokesman told the Post that, “This is entirely false and clearly your source knows that by making up lies under cloak of anonymity.
A source who is knowledge of the situation at the Daily News, however, told the Post that a Chapter 11 bankruptcy proceeding is “under consideration. It is definitely on the table and maybe the front of the table, not a side table.”
In March of this year. the Post reported that Terry Jimenez, the chief executive of Tribune Publishing, owner of the Chicago Tribune and New York Daily News, had been terminated from his position in the wake of the takeover by Alden Global Capital, who was concerned about severely cutting costs at the paper.
The Post reported that with 20 years experience in publishing, Jimenez was promoted to CEO from CFO in February of 2020. Staffers at the Daily News learned of Jimenez’s departure in the final line of a staff email. “CEO Terry Jimenez is no longer with Tribune and we wish him well in his future endeavors,” as was reported by the Post.
A Chapter 11 bankruptcy allows for a company to continue operations while crafting a plan to significantly lower its debts.
In May of this year, Alden purchased the Daily News along with nine other dailies owned by Tribune Publishing, as was reported by the Post. They then spun off the paper into a separate entity which raised serious concerns as to whether the NY tabloid would remain solvent.
Those expressing concerns about the Daily News spin off included John Heffernan, president of the New York Pressmen’s Union who also heads the Allied Printing Trades Council for drivers, electricians and mailers. He told the Post that “all the unions are suspicious” of the spinoff.
“We’re looking at the SEC filings and we’re worried that they are trying to get out of their pension liabilities,” Heffernan told the Post.
On Wednesday, the Post reported that a meeting was held between representatives of the NY Daily News and union officials. Because of rumors of a possible Chapter 11 bankruptcy, negotiations over new union contracts grew heated as many were unclear about the future of the iconic New York tabloid.
If a bankruptcy were to be filed it is quite possible that the pensions of NY Daily News employees could be in jeopardy, as Alden Global could escape the financial obligations of paying out pensions that are estimated at anywhere between $20 million and $100 million, according to the Post report. The group that would be most affected if the bankruptcy was successfully implemented would be the pressmen who print the Daily News and the drivers who have delivered the paper over the years, as was reported by the Post.