Circuit City is going to be liquidated. This once potent company has been forced to liquidate and will soon start selling all their goods at fire sale prices, and close all remaining stores once the vultures have picked over the goods.Liquidation sale starts Friday.
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MNI has lost ANOTHER multi-million dollar advertiser. The liquidators will run some rop ads for a short time, providing a short term bump in revenue. What MNI loses is a weekly preprint advertiser that spends more than $15,000,000 per year in preprint revenue, according to external sources. Once Circuit City is out of the way, Best Buy would then be able to cut back on their promotions, page count of preprints, and periodic rop ads as Walmart will be left as their only nationwide electronics competitor. This will cost MNI even more in lost revenue.
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Let's see, this week alone, Circuit City, Gottschalks, and Goodys all close their doors. Mr. Pruitt, we await your response as to how you personally plan to turn this company around. Staff cuts, news service cuts, and combining news stories with other papers once competitors won't cut it any more. Your top line is dissolving faster than the savings these moves entail.
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20 comments:
methinks there are several MNI senior staff managers updating their forcast numbers for the next six weeks. Would not be suprised to read or hear about additional job cuts after the earnings call on Feb 5
Anonymous 8:15 -- no kidding... I am hearing there is near-panic in some quarters of the company.
Well, you can bet that near panic is no where around the headquarters building where they keep granting themselves massive shares of stock and collecting the 44.44% dividend.
No need for certain people to panic; they've done pretty well for themselves despite laying off 2,500 employees and making a mess of things.
Without revenue, how will McClatchy get their money to stalk the Palin family?
Well, all I can say is..."Oh Goody"
(Like the company that just went bankrupt. Get it. That's a joke son)
...I suspect the McClatchy's last great unethical act will be to place big orders from their suppliers, then file chapter 11 and stiff them.
..Nobody in their right mind would take anything but cash-on-the-barrelhead upon delivery to any McClatchy owned rag.
Consumer confidence is the foundation of any economy.
If you do everything you can to destroy that confidence in order to push a political goal, you will create a self fulfilling reality that will eventually destroy you also.
I can't find a single Democrat that will admit they have been in control of the economy for two years. The change was needed already, but the change of bringing back all the Clinton people is questionable. I wonder what appointment is in store for Monica? The server of cigars and brandy?
Over at Etaoin Shrdlu, Howard Weaver’s last posts are dated Jan, 2, 9, and have 0 comments. The dude’s blog is a dud these days. How soon they forget, a big shot one day, and taking potshots the next.
Why hasn’t Gary Pruitt been fired?
Does the Board of Directors at McClatchy receive a salary? Perks?
Gannett says the one week work furlough to ‘share the pain’ could save 600 jobs. They have eliminated 7000 positions since 2007. I wonder if the executives there are sharing the pain?
Dave D. said...
...I suspect the McClatchy's last great unethical act will be to place big orders from their suppliers.
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All newspapers suppliers are changing their terms on accounts.
We look at the top line and see advertisers folding. But the supply side of newspapers are seeing the shift as well.
The paper mills are looking to convert away from newsprint to some other paper product, with growth in sales -- like toilet tissue.
That will drive the price of newsprint up further, with tougher terms.
I know that has to be correct Dave as I just finished outfitting my new McClatchy financed 96' M/Y with monogrammed toilet paper. 22.50 for 2 rolls!
Why aren’t the tree huggers in a frenzy about the killing of trees for print paper? Even recycling old newspapers takes energy. Gas for delivery, and so forth. Another set of hypocrites on display. Maybe after Algore writes the $100,000 check for his energy bill, he can devote some time to saving the planet from his own wasteful ways.
I have often thought they should publish these papers in soft 2 ply and mix some Preparation H in with the ink. What with the aging demographics, I think this is a winning business model.
A McClatchite says that Howard Weaver had to go. Staying in that $$$$ hotel spa, and taking a massage after he told the ‘lower’ staff they were kaput, was just too damaging, and the RUMOR WOULD NOT DIE. What were you thinking Howard? "Let them eat cake, while my perk is this 'Sweetie' masseuse."
..9:28, 9:47..I think you're on to something big. McClatchy's last best chance could be something as simple as rounding the newspapers edges and softening the newsprint. Perforated segments would be nice, but it's not really necessary. Older readers would have something they could do with the editorial section that doesn't rub them the wrong way. It'd sorta be fun to get up early and watch the old duffers running out on the lawn to fight over the Sunday edition. Nobody has fought over a McClatchy paper since Pinky Brown was Goobinator.
Anonymous January 17, 2009 10:42 AM said...
I have often thought they should publish these papers in soft 2 ply and mix some Preparation H in with the ink.
Why Preperation H? They have been real happy putting sand in the vaseline for years!
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