Chatham Announces Plan to Buy Newspaper Publisher McClatchy

July 13, 2020by Tali Arbel, AP Business Writer
Chatham Announces Plan to Buy Newspaper Publisher McClatchy
McClatchy Co. owned Miami Herald newspaper are shown Oct. 14, 2009, in Miami. (AP Photo/Wilfredo Lee, File)

NEW YORK (AP) — Hedge fund Chatham Asset Management plans to buy newspaper publisher McClatchy out of bankruptcy, ending 163 years of family control.

The companies did not put a price on the deal in an announcement Sunday. The agreement still needs the approval of a bankruptcy judge; a hearing is scheduled for July 24.

McClatchy is one of the largest newspaper companies in the U.S. It owns 30 papers including the Miami Herald, the Charlotte Observer and the Sacramento Bee. It filed for bankruptcy protection because of a heavy debt load stemming from its $4.5 billion purchase of the Knight-Ridder newspaper chain in 2006, just as the newspaper industry went into steep decline.

Chatham was McClatchy’s largest shareholder and debt holder. It beat out a bid from Alden Global Capital, another hedge fund that has taken a leading role in the U.S. newspaper business.

Chatham’s other media holdings include the Canadian newspaper chain Postmedia and National Enquirer publisher American Media Inc. But industry expert Ken Doctor has noted that it doesn’t make financial sense to combine those with McClatchy in order to cut costs, as newspaper dealmakers like to do. And the emergence of Alden Global Capital as a bidder has given rise to speculation that Chatham will try to combine McClatchy with Alden’s holdings or with another big newspaper company, like Gannett.

While national newspapers such as The Wall Street Journal and The New York Times are adding digital subscribers that help them navigate advertising declines, many local outlets have had a difficult time. That has contributed to a string of bankruptcies and consolidation, much of it involving investment firms, deepening concerns about declining quality as newsrooms shrink and papers close.

The coronavirus pandemic has exacerbated ad-revenue declines and prompted furloughs, pay cuts, layoffs and more newspaper closings.

Several mayors of cities where McClatchy has a paper wrote to the bankruptcy court, asking the judge to consider the civic value of the paper.

“We want our newspaper to emerge from this bankruptcy with owners who are willing to invest in our community, and provide us with journalism at its best,” Lexington, Kentucky, mayor Linda Gorton said of the Lexington Herald-Leader.

McClatchy’s origins date to 1857, when it began publishing a four-page paper in Sacramento, California, following the California Gold Rush. The company remains headquartered in Sacramento.

A+
a-
  • hedge funds
  • McClatchy
  • media
  • newspapers
  • In The News

    Health

    Voting

    Media

    Fake Images Made to Show Trump With Black Supporters Highlight Concerns Around AI and Elections

    WASHINGTON (AP) — At first glance, images circulating online showing former President Donald Trump surrounded by groups of Black people... Read More

    WASHINGTON (AP) — At first glance, images circulating online showing former President Donald Trump surrounded by groups of Black people smiling and laughing seem nothing out of the ordinary, but a look closer is telling. Odd lighting and too-perfect details provide clues to the fact they... Read More

    March 1, 2024
    by Tom Ramstack
    Television Journalist Cited for Contempt for Defying Subpoena Over Spy Report

    WASHINGTON — A federal judge in Washington, D.C., held veteran journalist Catherine Herridge in contempt of court Thursday for refusing... Read More

    WASHINGTON — A federal judge in Washington, D.C., held veteran journalist Catherine Herridge in contempt of court Thursday for refusing to disclose her sources for Fox News reports about an FBI investigation of a Chinese American scientist. The judge fined Herridge $800 per day until she... Read More

    Florida Lawmakers Prepare for Gov. DeSantis to Veto Social Media Ban on Children Under 16

    TALLAHASSEE, Fla. (AP) — Florida lawmakers were bracing for Republican Gov. Ron DeSantis to veto a bill banning social media... Read More

    TALLAHASSEE, Fla. (AP) — Florida lawmakers were bracing for Republican Gov. Ron DeSantis to veto a bill banning social media for children under 16 on Friday and finding a way to make him more comfortable with its language before their session ends next week. DeSantis supports... Read More

    Russian Disinformation Is About Immigration. The Real Aim Is to Undercut Ukraine Aid

    WASHINGTON (AP) — For Vladimir Putin, victory in Ukraine may run through Texas' Rio Grande Valley. In recent weeks, Russian... Read More

    WASHINGTON (AP) — For Vladimir Putin, victory in Ukraine may run through Texas' Rio Grande Valley. In recent weeks, Russian state media and online accounts tied to the Kremlin have spread and amplified misleading and incendiary content about U.S. immigration and border security. The campaign seems... Read More

    Humorously Morose Comedian Richard Lewis, Who Recently Starred on 'Curb Your Enthusiasm,' Dies at 76

    NEW YORK (AP) — Richard Lewis, an acclaimed comedian known for exploring his neuroses in frantic, stream-of-consciousness diatribes while dressed... Read More

    NEW YORK (AP) — Richard Lewis, an acclaimed comedian known for exploring his neuroses in frantic, stream-of-consciousness diatribes while dressed in all-black, leading to his nickname “The Prince of Pain,” has died. He was 76. Lewis, who revealed he had been diagnosed with Parkinson’s disease in 2023, died... Read More

    It's an Election Year, and Biden's Team Is Signaling More Aggressive Posture Toward the Press

    NEW YORK (AP) — Occupants of the White House have grumbled over news coverage practically since the place was built.... Read More

    NEW YORK (AP) — Occupants of the White House have grumbled over news coverage practically since the place was built. Now it's Joe Biden's turn: With a reelection campaign underway, there are signs that those behind the president are starting to more aggressively and publicly challenge... Read More

    News From The Well
    scroll top