With the flow of revenue into America's newspaper industry drying up, newspaper companies are starting to part out physical assets to pay debts.Take the Bellingham Herald, which has had to go through two rounds of layoffs in the past year. The 83-year old Bellingham Herald building is up for sale and the Herald is in negotiations with a local buyer, according to an announcement by Herald publisher and president Glen Nardi. If the sale is completed, Herald staff would remain in the building at least five years through a lease, Nardi said.
The building was built in 1926. McClatchy purchased The Bellingham Herald from Knight Ridder in 2006, which had purchased the newspaper from Gannett the year before.
Proceeds from the sale are expected to be shipped to Sacramento to pay off McClatchy's $2 billion corporate debt.
When escrow closes, the Herald becomes a renter instead of an owner. (Photo credit: David Helm, Localism)
.
.
8 comments:
Let's see...Miami, Star Telegram, Bellingham.......what building owned by MNI is NOT for sale? Is this all not only for paying down the debt but also as prep for the outsurcing of the newspapers entirely? Or prep for full conversion to the internet?
Prep for nothing. You'd be an idiot to buy a McClatchy building right now. Why, when you can get it down the road after bankruptcy for pennies on the dollar.
You should see the palazzio that Cheryl Dell built while publisher at the Tri-City Herald. It's gorgeous.
Too bad they spent money like drunken sailors when times were good, and didn't squirrel anything away.
I bid 50 Quatloos
Someone could make a killing turning the Charlotte Observer building into a parking deck for Panthers games.
What's up with the 41% stock jump this afternoon? MNI on the rebound?
What's happening with the McClatchy stock?
It's up 42 percent (okay, that's only 20 cents, but still).
Are people buying because they think all these staff cuts are going to save the company?
Wow, that's sad.
I can't believe how badly corporate has screwed things up. The Tri-City Herald has a fancy new building that's about 3-4 years old. Who's gonna buy it if it comes down to that? The newsroom's 1/2 empty now and so are other departments. What a waste. Maybe they should just start renting out office space.
Post a Comment