I am a carrier for the Charlotte Observer... Last week we received our checks late one day and this week there are no checks and no one knows why. I saw on Fox Business a couple of weeks ago about McClatchy being warned to raise their capital or else. They only way to do that is take or delay payment to us the employees and the retirees.
Anybody else have this experience?
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10 comments:
Sounds believable. McClatchy is already having trouble paying somebody to take out the trash and to mow the lawns.
About 2 or 3 weeks ago, we received an e-mail stating that J.P. Morgan Chase was asking for collateral towards the purchasing and travel and entertainment credit cards. The only logical reason that they would excercise this right is that "someone" hasn't been paying the monthly bill on time.
McClatchy is defaulting on their loans and doing this debt exchange for a reason.
Things are extremely tight on cash.
All of the 30 newspapers are being required to transfer as much cash as possible to the corporate HQ bank accounts. So each of the 30 newspapers is operating on really minimal amounts of cash in their operating business checking accounts.
It does not surprise me that they would have problems.
In my business to manage monthly cash flow I have to keep enough free cash to handle about one month of inventory/expenses at all times.
When an industry is imploding (-30% revenues year over year) it is impossible to manage that safely.
There are going to be problems and this is just going to get worse.
It's so dam hot in the offices these days too.
Pretty soon, McClatchy won't even afford offices.
True but Strip Malls are coming soon.
What is that salary Gary Pruitt is still pulling down? How late do you think his check is? These people have no shame.
In these tight money times, I'll bet Pruitt booked a coach seat on his flight to Chicago. Yeah right, when pigs fly. Oh wait, a pig did fly!
In these tight money times, Pruitt probably booked a coach flight to Chicago, right?
Carriers are independent contractors who are paid by finance, not payroll. Finance has been outsourced and all processes are taking longer than they used to, but it has nothing to do with cash flow.
It's very hard for me to believe that any of you were ever journalists or ever employed in the modern business world based on the comments that are posted here. What a bunch of nonsense.
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