Slog

News & Arts

The Stranger Suggests

Critics' Best Bets
Music Arts & Food


Line Out

Music & the City
at Night

Thursday, January 29, 2009

Fears of a Chapter 11 Bankruptcy Filing at The Seattle Times

Posted by on Thu, Jan 29, 2009 at 8:15 AM

(Originally posted late last night but moved up for our morning readers.)

On Wednesday, worries that the dominant Seattle daily may soon file for Chapter 11 bankruptcy protection crept out into the open when an administrator for the union that represents Times employees mentioned the possibility in an e-mail to union members.

"Within the Guild we have been preparing for a number of worst-case scenarios, including the possibility that the Times might enter the Chapter 11 bankruptcy process," wrote Liz Brown, administrator for the union, the Pacific Northwest Newspaper Guild.

Brown's e-mail came in response to an earlier e-mail from Times managers suggesting that a union employee pension freeze might be sought in upcoming negotiations. Brown's e-mail also noted the "scary times for newspapers and newspaper employees" and predicted that the Times would seek further concessions from the union when those discussions get underway. (The paper has already instituted unpaid furloughs and pension freezes for its non-union managers.)

After Brown's e-mail went out, Alayne Fardella, Senior Vice President for Business Operations at The Seattle Times Company, sent a response to Times managers. Fardella specifically mentioned Brown's e-mail, did not deny that Chapter 11 is a possibility, and said the company is keeping all options open.

Among Times reporters, according to one newsroom source, it's "commonly understood, or presumed" that a bankruptcy filing by the Times is "a very likely next step within the year." However, at a staff meeting on Wednesday, David Boardman, executive editor for the Times, presented bankruptcy as a last-ditch option—and a highly unappealing one to the paper's owners, given that it would allow a court to step in and exert a certain amount of control over the paper's business model. The implication was that significant concessions by the reporters' union could help avoid that difficult scenario.

Without about a month left before the Seattle Post-Intelligencer likely stops printing, and now these growing fears of a Times bankruptcy filing, it seems increasingly plausible that Seattle could go from a two-daily-newspaper town to a no-daily-newspaper town—and perhaps a lot faster than most people think.

Wednesday's e-mail from Liz Brown is in the jump.

To: All Guild-represented employees

From: Liz Brown, Guild administrative officer

I want to answer some questions about the e-mail and information sent to you by The Seattle Times this morning.

First of all, the Guild has not formally agreed to re-open our contract for negotiation, nor have we made any agreements with the Times in regard to a freeze of the pension plan. The Times sent out that message to meet a requirement for legal notice to pension participants, and clearly the company hopes to negotiate changes to the pension. (This does not affect Composing employees represented by the Guild, as they are in a different pension plan.) At this time, we do not have any negotiation meetings scheduled with the company.

However, since the announcement about unpaid furloughs and a pension freeze for managers and unaffiliated employees, I certainly have anticipated that the Times would contact not only the Guild, but representatives of other unions at the company in order to seek contract concessions. Within the Guild we have been preparing for a number of worst-case scenarios, including the possibility that the Times might enter the Chapter 11 bankruptcy process.

At the very least, we can expect the decision by the Hearst Corp. to stop printing the Seattle Post-Intelligencer to have an impact on all employees involved in the production and distribution of the print products.

These are scary times for newspapers and for newspaper employees. The advantage to being represented by a union is that you have an opportunity to shape what happens to you. I ask you for your attention and active participation; in return, I promise you will be informed on what’s happening at every step along the way.

Liz Brown
Administrative Officer
Pacific Northwest Newspaper Guild

 

Comments (31) RSS

Oldest First Unregistered On Registered On Add a comment
1
the blethens are afraid to let a court "step in and exert a certain amount of control over the paper's business model"?!?!? because their current business model is SOOOO good?! you wanna know what their current business model is? it's "lemme close my eyes and pretend this is just a bad, bad dream." anything other than what they're doing now would be better.
Posted by open your eyes, bitches! on January 29, 2009 at 2:58 AM
2
Blethen thinks there is a pony under that pile.
Posted by ratcityreprobate on January 29, 2009 at 5:46 AM
3
zzzzzzzzzzzzzzzzzzzz

in a depression why is this any big deal

King County will file bankruptcy as well as many other counties and cities - not to mentions hundreds of business big and small

a bit selective to act as if 50,000 jobs did not just go away in our region ... more to follow

remember TV depends on ads as well - who will go under in the big world of broadcasting?
Posted by Lee on January 29, 2009 at 6:41 AM
4
It makes me think that The Stranger might want to take on the mantel of Seattle's "newspaper of record" in the near future...
Posted by Simac on January 29, 2009 at 8:08 AM
5
Hey Eli... Why don't you use some of your inside resources and find out what kind of bonuses were paid to Seattle Times board members and upper- and middle-management last year as a reward for "trimming" Guild employees.
Posted by DOUG. on January 29, 2009 at 8:10 AM
6
It looks like "Seattle's Only Newspaper" is getting quite close to being literal...
Posted by The CHZA on January 29, 2009 at 8:27 AM
7
Ha they think Chapter 11 will help, what a joke, time for liquidation folks.
Posted by vooodooo84 on January 29, 2009 at 8:39 AM
8
The challenge is original content. Local newspapers are little different from blogs that reprint 85% of someone else's article and wrap it with one or two sentences. In that sense the value added are people like Danny Westerneat, but all the rest is just recycled stuff.
Posted by Content on January 29, 2009 at 8:58 AM
9
Given the choice between the ST and nothing, I choose nothing.
Posted by AJ on January 29, 2009 at 9:13 AM
10
I agree with AJ. I'll be taking the NYT or WSJ, not the Seattle Suburban Times.
Posted by Will in Seattle on January 29, 2009 at 9:36 AM
11
"The challenge is original content. Local newspapers are little different from blogs that reprint 85% of someone else's article and wrap it with one or two sentences. In that sense the value added are people like Danny Westerneat, but all the rest is just recycled stuff."

Where do you think most blogs get their content from? Newspapers. Without the full-time, paid reporting staffs of newspapers and other publications, like the Stranger, government -- school boards, water districts, city councils, etc. -- won't be watched and will be free to run amok.

Say what you want about the Times or the P-I, but simply their presence is enough to keep many lawmakers in line.
Posted by larry on January 29, 2009 at 9:52 AM
12
9 and 10. Careful what you wish for.
Posted by heywhatsit on January 29, 2009 at 9:53 AM
13
@11:

Once there is a West Seattle Blog for every neighborhood in the city, your position will cease to be tenable.

In certain niche areas, the blogs have been eating the dailies' lunch for some years now. They have reported stuff that the dailies aren't even aware of, and wouldn't cover if they were. As the dailies collapse under their own weight, opportunities for niche news blogging can only grow.

The problem for the blogs IMO will be access. The dailies were too big to blow off. The blogs aren't. If you were Frank Chopp, would YOU return Josh Feit's phone calls? I wouldn't.

Bloggers who want to build themselves into credible, respected news operations will have a long hard slog. They will have to respect their sources and respect the process. There will be no instant gratification.

The future belongs to bloggers who also are *real* reporters, such as Eli Sanders and Tracy Record -- even to David Goldstein, if he can discipline himself.

I expect ECB, Josh Feit, and Dominic Holden to be "road kill on the information highway," and the sooner the better.
Posted by ivan on January 29, 2009 at 10:49 AM
14
Ask Alayne Fardella how much of a bonus she got a few years ago for getting the guild to take a two-year wage freeze.
Posted by It's insane on January 29, 2009 at 11:24 AM
15
The P.I. employees are toast regardless what happens...they've ALL been given pink slips and the final day is March 18th. If Hearst decides to go to a web edition, they'll hire from scratch, and presumedly, will negotiate completely new contracts.
Posted by michael strangeways on January 29, 2009 at 11:26 AM
16
@13:

I agree with you on many points. Yes, some hyper-local blogs provide their readership with more and better information. Done well, these sites are very beneficial to their readers. But how many of them actually make enough to money to qualify as a "living wage"? How many of them do it during free time and will eventually grow tired and let their site wither and die. Then, with the newspapers long gone, where will people get their information and who will hold accountable the powers that be?

Obviously, I'm a fan of newspapers. They must make drastic changes to the way they operate -- to be both functional for the public and profitable. But who do you want watching over your city and state government? A huge daily newspaper or a handful of bloggers who have no access? We need the local press to stick around.

Posted by larry on January 29, 2009 at 1:10 PM
17
@16:

Watch West Seattle Blog, and watch it closely. They appear to be selling plenty of ads. I have done my best to support them and their sister site, White Center Now.

You'd have to talk to Tracy to find out their financial picture. I'm not privy to it. But if any local news blog around here can make it, WSB will.

I assure you they have access to, and plenty of respect from, public officials. IMO this is the journalistic model to watch.
Posted by ivan on January 29, 2009 at 1:32 PM
18
don't live in West Seattle.

When you come out with a Fremont-UDist daily paper with Zippy comics, wake me.
Posted by Will in Seattle on January 29, 2009 at 1:54 PM
19
From two great dailies to nothing in a year. Party hats are already being hoarded in the halls of county and city government. Neighborhood blogs are nice, but can't do the work of teams of daily reporters backed by deep enough pockets to find out the truth.

The Stranger does a great job as well, but someday Dan Savage may want to do something else, and the Savage gravy train will grind to a halt. How to pay the great journalists then?
Posted by ann on January 29, 2009 at 3:42 PM
20
Personally, I would like to know who Eli is sleeping with to get the manager e-mails and want to urge him to use protection.
Posted by Liz Brown on January 29, 2009 at 5:09 PM
21
#19, where are these teams of daily reporters roaming around to find the truth? Why are they different from me roaming around to find the truth (stack of phone calls, e-mails, in-person visits, long meetings sat through, court documents and legal records dug through online - and that was just the past 19 hours)? Those "deep pockets" are a myth. If "deep pockets" led to some grandiose commitment to pay for big news organizations no matter what the cost, then Hearst wouldn't be doing what it's doing, because by all accounts I've heard, their pockets are plenty deep, and a $14 million loss is chump change.

And #11, it takes me both hands and both feet to count off the number of councils, boards, districts we cover, often with nary another reporter in sight, from neighborhood councils to design review boards to hearing-examiner proceedings to school-board members' community Q/A sessions, to a 3-week murder trial last fall that resulted in the stunning exoneration of a teenager who shot a man dead near popular Alki Beach ... an exoneration that may yet lead to your tax dollars paying a significant amount of compensation for the allegedly wrongful prosecution of what turned out to be, agreed the jury, a case of self-defense ... a trial I paid a reporter to cover day in and day out.

Then there are the social-equity stories, like the neighbors who noted that the only wading pools open in West Seattle on Sundays were in the higher-income parts of town ... we did followups and used map graphics to show the picture citywide ... with the neighbors continuing their full-court press, the Park Department finally relented, and the only time any other news organization jumped into that story was to publish the news release announcing the decision (several days after we reported it shortly after it happened).

This kind of coverage isn't "nice." It's ESSENTIAL. And in time, EVERY neighborhood WILL have it.

I don't wish for the demise of citywide or regional journalism organizations. I spent more than 30 years working for news organizations big and small. But the reason that organizations like mine are on the rise is that we are filling a VACUUM. Nobody was reporting IN A TIMELY MANNER - the timely manner that the Internet's been enabling for more than a decade now - on neighborhood-level matters from development to dogcatchers, from business openings/closings to same-day crime reports, and way beyond. Citywide/regional media will parachute into a neighborhood if there is a sexy crisis or controversy that will be of interest to readers outside the immediate location; otherwise, they have to be all things to all people.

Our central statement in all this is, don't be fearful and cling to the past. Focus on the journalists and the journalism, not the organizational framework in which they are producing it, and get on with the business in assisting them in discovering how they will be supported in producing it in the future - because the future is here, now.
More...
Posted by Tracy @ WSB on January 30, 2009 at 1:49 AM
22
Looks like I will be using www.jobdango.com to run job ads now. At least the work better than craigslist.
Posted by kraventhehunter on January 30, 2009 at 10:08 AM
23
looks strange to hear the news.i wish for none
Posted by kraigs24 http://www.floridainjurieslawyer.com on May 27, 2010 at 11:29 AM
24
Find out information on chapter 11 bankruptcy and its difference from chapter 13 bankruptcy on http://debtreliefohio.org/ohio-chapter-1…
Posted by debtrelief on May 29, 2010 at 11:11 AM
25
Find out information on chapter 11 bankruptcy and its difference from chapter 13 bankruptcy on http://debtreliefohio.org/ohio-chapter-1…
Posted by debtrelief on May 29, 2010 at 11:15 AM
26
Have a nice day! Keep up the good job.
Posted by Moroccanfurniture on August 1, 2010 at 8:33 PM
27
dssdfsfs
Posted by lili http://www.louisvuitton4love.com/ on August 23, 2010 at 2:08 AM
28 Comment Pulled (Spam) Comment Policy
29
I enjoyed reading your nice blog. I see you offer priceless info. Stumbled into this blog by chance but I’m sure glad I clicked on that link. You definitely answered all the questions I’ve been dying to answer for some time now. Will definitely come back for more of this. Thank you so much
Hypergain
Posted by maradonasports on September 16, 2010 at 2:53 AM
30
The said post here is very informative. I am impressed as to the ways in which the author delivered the message to us readers. I am curious as to the details and have read and got my answers to my query. It is nice to know that this one here really exist. I would love to track your future posts.
Hypergain
Posted by maradonasports on September 16, 2010 at 2:56 AM
31
Thanks for all the information. I admire what you have done here. We will look forward for your future updates.
Posted by maqian on March 15, 2011 at 11:56 PM

Add a comment

Advertisement
 

All contents © Index Newspapers, LLC
1535 11th Ave (Third Floor), Seattle, WA 98122
Contact Info | Privacy Policy | Terms of Use | Takedown Policy