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.
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