OLD Media News

Newspaper parent McClatchy shares fall in value

McClatchy might be in a financial flux with announcing a large third-quarter loss and warnings of a potential liquidity crisis next year. To top it off, shares in the publishing company fell 65 percent on Friday.

The recent quarter’s loss included noncash impairment charges of $258.1 million in goodwill and $37.2 million in the loss of market value of its newspaper brands.

Through all of last week, the shares fell from $2.73 to 49 cents, which means the shares lost a value of 82 percent. Additionally, the publishing company further disclosed the fact that it’s facing $124 million in required contributions to its employee pension plan next year.

The Wall Street Journal reported that McClatchy has hired Evercore Group LLC, FTI Consulting Inc., Skadden, Arps, Slate, Meagher & Flom LLP and the Groom Law Group to advise on its next steps.

McClatchy has struggled with debt since 2006 when it bought newspaper publisher Knight Ridder for $4.5 billion. As of now, the company has 30 newspapers including Miami Herald, The Kansas City Star and the Charlotte Observer.

Mariam Ahmed

Recent Posts

Dynamo hires former Business Insider executive editor Harrington

Former Business Insider executive editor Rebecca Harrington has been hired by Dynamo to be its…

1 hour ago

Bloomberg TV hires Kerubo as desk producer

Bloomberg Television has hired Brenda Kerubo as a desk producer in London. She will be covering Europe's…

2 hours ago

Jittery CNBC staff reassured by new boss

In a meeting at CNBC headquarters Thursday afternoon, incoming boss Mark Lazarus presented a bullish…

2 hours ago

Making business news accessible to a wider audience

Ritika Gupta, the BBC's North American business correspondent, was interviewed by Global Woman magazine about…

2 hours ago

Rest of World hires Lo as China reporter

Rest of World has hired Kinling Lo as a China reporter. Lo was previously a…

3 hours ago

Bloomberg rises to No. 7 biz news website

Bloomberg News saw strong unique visitor growth to its website in October, passing Fox Business…

3 hours ago