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McClatchy to Declare Bankruptcy?

Discussion in 'Journalism topics only' started by LanceyHoward, Nov 14, 2019.

  1. BTExpress

    BTExpress Well-Known Member

    Just some scuttlebutt from a gathering of current and former company execs a few months ago.

    The most depressing thing about the never-ending Tribune bankruptcy were all the disputes about executive bonuses. When it started we figured the judge would scold the execs and put them in their place ("how dare you claim you're entitled to this after running the company into the ground yada yada yada") --- instead, he sided with them just about every time.
    Last edited: Feb 13, 2020
  2. Raven

    Raven Well-Known Member

    Courts are pay to win.
  3. LanceyHoward

    LanceyHoward Well-Known Member

    At the end of the third quarter, McClatchy reported: "509,400 total paid digital customer relationships". McClatchy does not have a big enough digital base to go 100% electronic.
  4. Tarheel316

    Tarheel316 Well-Known Member

    Entirely? Damn.
  5. TigerVols

    TigerVols Well-Known Member

    If you work in a position where your paycheck is more than 50% relied upon by print newspapers, you have only yourself to blame for not finding a new job pronto.
    Raven and wicked like this.
  6. BTExpress

    BTExpress Well-Known Member

    I want to retire pronto. Just running out the clock for 33 months.

    Two bankrupt companies on my resume is plenty.
    Last edited: Feb 13, 2020
  7. Fredrick

    Fredrick Well-Known Member

    That is very true.
  8. Fredrick

    Fredrick Well-Known Member

    I have a few questions.
    I have a few questions. If Chatham is the new owner, what happens? Does McClatchy with all its Gannett-like mannerisms still run the show? Or does Chatham start to run the news organization. Do you think that company will have layoffs? Is Chatham blood thirsty, wanting to bleed all the papers of all their funds which means firing up to 50 percent of the content producers?
    We know what happens when Gatehouse takes over. What should the McClatchy employees expect in coming months?
  9. HanSenSE

    HanSenSE Well-Known Member

  10. BTExpress

    BTExpress Well-Known Member

    Right now 65 employees are producing print products for 28 newspapers, basically throwing shit on pages as fast as they can. The next layoffs from this side will be when they just shut it down completely.
  11. LanceyHoward

    LanceyHoward Well-Known Member

    I was reading the latest 10-Q of McClatchy. Total digital advertising revenue declined 14.7% in the first three quarters of fiscal year 2019.

    So digital is not going to be the answer. McClatchy will generate about 70 million dollars of EBIDTA in FY2019 this year on revenues of about 700 million. Revenues in the first three quarters declined about 12%. So if revenues fall 10% in FY2020 that will eat up the EBITDA.

    Which means that cuts will continue (if possible, at some point there are just not enough people to put out the product). But McClatchy owns 30 papers. Some are less profitable than others. I think that some of these papers are about to go negative cash flow if revenues continue to decline.

    I don't think Chatham is going to carry a paper with negative cash flow. When a paper goes negative cash flow at McClatchy I would expect it to be sold to a neighboring paper just as Youngstown and Durham were.
  12. BTExpress

    BTExpress Well-Known Member

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