Star Ledger is in Trouble

[Kire]

The Newhouse family said Thursday that it may have to sell one of its biggest newspapers, the Star-Ledger of Newark, N.J., unless workers accept wide cuts and labor concessions to offset mounting losses.

Donald Newhouse, president of Star-Ledger parent Advance Publications, said that the paper has been losing money for several years but that the situation had become critical by the end of last year. He expects the paper to lose $35 million to $40 million this year.

As a result, the family will sell the paper and sister publication the Trenton Times unless 200 of the Star-Ledger's 750 full-time, nonunionized staffers agree to leave, and unless the union of mailers and truck drivers agrees to contract concessions by October, the paper's publisher, George Arwady, told employees Thursday. J.P. Morgan Chase & Co. has been retained to shepherd a possible sale, he said.

The announcement shows that the industrywide downturn in print advertising is forcing even a deep-pocketed owner such as the Newhouse family -- which owns more than two dozen newspapers, the big Condé Nast magazine company and a cable-TV business -- to contemplate drastic action.

More: http://www.huffingtonpost.com/2008/08/01/jared-kushner-eyes-new-je_n_116278.html

[Kire]

1. official statement from the paper

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The Star-Ledger announces large-scale buyout offer
by Steve Chambers/The Star-Ledger
Thursday July 31, 2008, 7:20 PM

The owners of The Star-Ledger announced today they will sell the newspaper if they cannot win union concessions and persuade a large number of non-union, full-time workers to take buyouts in the next two months.

The owners set a deadline of Oct. 1 for getting 200 of the paper's 756 non-union full-time employees to take a buyout and for achieving the union concessions. The paper's total workforce is 1,412.

The offer comes at a time when the newspaper industry is reeling from plunging advertising revenues linked to a troubled economy and the growth of online media.

The news was announced to grim-faced employees by Publisher George E. Arwady at the paper's headquarters in Newark this morning. He characterized the paper as being "on life support" and urged employees to consider the offer for the good of fellow employees.

"Despite the best efforts of all of us, The Star-Ledger is losing a battle to survive," Arwady said, noting the paper has suffered heavy losses the past two years. "If the Ledger is to have a future, it must make further changes in how it operates."

More: http://www.nj.com/news/index.ssf/2008/07/starledger_announces_largescal_1.html

[Kire]

2. sorry about the extra stuff up top

I guess I didn't proofread before I posted.

Here's some more links to the story in LBN:

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=102&topic_id=3422271

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=102&topic_id=3419014

[lisa58]

3. I've gotten the Star-Ledger for years...

...and they have never increased the price of the subscription - I bet people would pay more - I would it's the only decent local paper we have.