Monday, December 22, 2008
News / News Bites The Reader remains in the hands of Creative Loafing
Posted by Michael Miner on Mon, Dec 22, 2008 at 6:38 PM
A bankruptcy judge in Tampa has ruled that Creative Loafing Inc. can keep control -- for the time being, at least -- of the Reader and the five other alternative weeklies in its chain. The judge rejected a motion by Atalaya Administrative LLC, which is owed $30 million by CLI, asking the court to declare the chain in default and turn the papers over to Atalaya. Instead, CLI, which filed for Chapter 11 bankruptcy in September, was given more time to show that its reorganization plan can work.
The big reason for all that debt is Creative Loafing's purchase 17 months ago of the Reader and its sister City Paper in Washington DC. Borrowing so heavily to do that deal, CEO Ben Eason acted against the advice of his board; and when the economy went south, red ink that would have been hazardous in the best of times became unmanageable. CLI has suffered ever since the sale, and its cost-cutting hasn't spared the Reader: Six more layoffs last Thursday reduced this paper's editorial staff to 17; it was 38 when the old owners sold Eason the paper.
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This happened almost a week ago. Seems dubious to report the loss of nearly a third of your edit staff during the one week most readers are out of the office. When BEZ announced cuts, it was at the top of the home page. Why the disparity?
Because of some grand conspiracy to keep it quiet. Ya know, if you really wanted to keep it quiet, you mention it at all. But maybe the folks who were lost and those who "survived" needed a little time before rushing out tell you, ASK. Nah, couldn't be that, real folks dealing with real loss. You go ahead and point out the "disparity," you big lug, you. Jack ass.
I predicted that the sale of the Reader was not a good thing for the Reader. I hope the paper survives. Downsizing is never easy--not on those who are laid off nor on those who stay. Thanks for keeping us informed. BTW, would this have something to do with the online classifieds problem, i.e., the text is missing in all the ads I've looked at in the "Buy Sell Trade" category? My husband called to inquire about it. Someone told him he'd look into it and get back to him but that was a week ago.
Who were the latest to be let go? I sure Ben Joravsky wasn't one of them. He's the only one in this city that goes after those goddam TIFs!
Whoa ANSWERED. ASK is right. There is no crying in news -- you report it. I'm really sorry for those who lost their jobs but those who survive are obligated to report it. When it is still news.
It called hypocrisy Miner. You media types like to be all over people like a cheap suit from JewTown - I mean, Maxwell Street, no matter whether they "needed time" - especially people in government. You media types like to trumpet the failures of government. But now your own ox is gored, you find time to give them a little time before trumpeting the bad news. Bullshit. Ahhhhh, smell that ? That is the sweet smell of poetic justice. Have a merry christmas while looking for a job in this economy. I hope Lil Mick Dmubke and Ben the TIF man are next....
Well, what a sweet person you are, Orion. I hope you have a merry christmas too, you jag, and I pray you don't have to be out there looking for a job like these people, who seem to be paying for the mistakes of incompetent management. I knew Creative Loafing was going to be bad news, but I didn't think it would end up like this. The Reader's losses are a loss for the city.
Ego-driven business acquisitions are rarely successful, regardless of what field they are in. The recession and the declining state of the print medium just make it worse. The Reader's previous ownership saw the writing on the wall when they sold out. Unfortunately, they should have researched the sale more closely to see if the buyer could handle it, financially.
It is a very Merry Christmas in the Orion household BWV, thank you very much. Wife gets a couple of St. John's ensembles, son gets the new GLK (well, once he gets his license next month) and daughter gets a couple of Hayley handbags. Merry Christmas to all and to all a good night !
Oh man. Hate to see the Reader go down, but it's better than watching these guys turn it into the Red Eye. What would Atalaya do if they gained control? Sell it or try to run it? And, if the latter, do they know what the heck they're doing?
Orion: You have missed the whole point of Christmas-and of life. Guys who write "tough" as you do never are.
Johnny boy: Wanna try me ? Nice comments in Trib: http://newsblogs.chicagotribune.com/towerticker/2008/12/report-chicago.html
Why is Orion so pissed off at the Reader? If the paper's full of bullshit, why do you care?
It's because he's a racist, sexist and homophobic wingnut moron who hates the First Amendment.
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