AAN News
Layoffs Hit the Chicago Reader and Creative Loafing (Tampa)new
As the Creative Loafing bankruptcy case winds its way through the courts, Michael Miner reports that the Reader laid off more staffers last week. "Six more layoffs last Thursday reduced this paper's editorial staff to 17," Miner writes. "It was 38 when the old owners sold [Ben] Eason the paper." Creative Loafing (Tampa) also announced a handful of layoffs last week. MORE ON CL: Former Creative Loafing (Atlanta) editor Cliff Bostock offers his take on the problems at the Loaf.
Chicago Reader | Creative Loafing (Tampa) |
12-23-2008 8:49 am |
Industry News
Judge Allows Ben Eason to Retain Control of Creative Loafingnew
The bankruptcy court judge refused to grant a motion by lender Atalaya to give it ownership of the company yesterday, Creative Loafing (Tampa) reports. Judge Caryl E. Delano ruled that CL's reorganization plan should proceed, and that it was too early into the case to say the plan won't work. On a second part of Atalaya's takeover motion, the judge scheduled the final evidentiary hearing for Jan. 21, and a Jan. 26 hearing has been set to review CL's proposed reorganization plan.
Creative Loafing (Tampa) |
12-19-2008 3:52 pm |
Industry News
Creative Loafing Files Reorganization Plannew
Creative Loafing (Tampa) political editor Wayne Garcia says the plan, filed Monday in the company's Chapter 11 bankruptcy proceedings, makes the case for keeping the company in the hands of CEO Ben Eason. "The Debtor believes retention of existing senior management and existing publishers, editors, directors of shared services and key online personnel are vital to successful implementation of this strategy as the markets are shifting very quickly at this time," the plan reads. CL also filed a 10-year financial forecast and an analysis of how much the company would bring if it were liquidated. Read more from Atlanta Magazine's Steve Fennessy.
Creative Loafing (Tampa) | Atlanta Magazine |
12-17-2008 11:52 am |
Industry News
Creative Loafing's Day in Court 'Was Pretty Humdrum'new
That's what sources tell Atlanta Magazine's Steve Fennessy about the first court date of the company's bankruptcy protection hearings. Next week, CL CEO Ben Eason has to submit his restructuring plan, which will then be discussed in court. In other CL-related news, The Sunday Paper's publisher and investor answer some questions about that paper's proposed expansion into two more CL cities (Charlotte and Tampa).
Atlanta Magazine | The Sunday Paper |
12-11-2008 10:55 am |
Industry News
Atlanta Weekly Looks to Expand to Charlotte and Tampa by May 2009new
The Sunday Paper publisher Patrick Best announced his plans on Friday, citing the troubles of Creative Loafing -- which owns papers in Atlanta, Charlotte and Tampa -- as a major reason. "While we planned to go to both of these markets in the next few years, the troubles of the parent company of the major newsweeklies in both cities have convinced us to accelerate our plans," he says. Best, who was Creative Loafing (Atlanta)'s advertising director before launching The Sunday Paper, recently offered CL CEO Ben Eason $1 million for the Loaf's Atlanta publication. Best's expansion plans are being helped by funding from Brian Conley, the former owner of Knoxville, Tenn., AAN member Metro Pulse and current shareholder of Sunday Paper Publishing. Meanwhile, Atlanta Magazine's Steve Fennessy reports that Eason's main creditor filed a motion (PDF) on Friday claiming CL has not been forthcoming in explaining budgets and cash flow forecasts. The CL bankruptcy protection case is scheduled to go before a judge on Wednesday.
The Sunday Paper | Atlanta Magazine |
12-08-2008 8:09 am |
Industry News
Editor's Departure Leaves 'a Hole at the Heart' of Creative Loafingnew
In a farewell message to former Creative Loafing (Atlanta) editor Ken Edelstein, staffer Mara Shalhoup writes: "I think I speak for everyone here when I say, 'Thank you for giving me a chance. Thank you for working me hard. And thank you for making Creative Loafing aim higher. You will be missed.'" Edelstein, who had been with the paper for a decade, was fired last week after a reportedly "heated meeting" with CEO Ben Eason on implementing editorial cuts.
Creative Loafing (Atlanta) |
12-03-2008 3:29 pm |
Industry News
Former Creative Loafing Ad Director Offers $1 Million for Atlanta Papernew
Patrick Best, who spent four years as CL's advertising director before starting rival publication The Sunday Paper, told Atlanta Magazine's Steve Fennessy last week he's willing to pay Ben Eason $1 million for Creative Loafing (Atlanta). Fennessy notes that it is unclear whether the purchase would even be possible, given CL's Chapter 11 status, but Best says "it's not unusual for businesses that are in bankruptcy to sell off pieces of their company in order to raise capital." MORE on Creative Loafing: Former senior editor (and current shareholder) John Sugg writes about CL's "death spiral," and Creative Loafing's Mara Shalhoup responds. And departing senior writer Andisheh Nouraee discusses why he is leaving with Atlanta Progressive News.
Atlanta Magazine |
12-01-2008 1:41 pm |
Industry News
Senior Writer to Leave Creative Loafing (Atlanta)new
Andisheh Nouraee submitted his resignation to publisher Luann Lebedz just hours after Lebedz fired editor Ken Edelstein yesterday, Atlanta Magazine's Steve Fennessy reports. Nouraee, who began freelancing for the paper in 2000 and joined the staff in 2007, says his decision was prompted only in part by Edelstein's dismissal. "What happened today is just one symptom of the overall reason, that I don't want to work there full-time anymore," he says. His last day will be Dec. 5.
Atlanta Magazine |
11-25-2008 12:20 pm |
Industry News
Creative Loafing (Atlanta) Editor Firednew
Ken Edelstein was fired today after a decade as an editor at Creative Loafing's flagship paper, according to Atlanta Magazine's Steve Fennessy. Edelstein reportedly had a "heated meeting" last week with CL CEO Ben Eason over the implementation of further editorial cuts. "The meeting made it clear that Ben and I have very deep philosophical differences about what's best for the company and its employees," Edelstein tells Fennessy. More from the Atlanta Journal-Constitution.
Atlanta Magazine | The Atlanta Journal-Constitution |
11-24-2008 3:38 pm |
Industry News
Creative Loafing Creditor Objects to Hiring of Financial Advisornew
Atalaya Capital Management, which lent CL's Ben Eason $30 million to buy the Chicago Reader and Washington City Paper, has filed a motion (pdf file) asking that Eason not be allowed to hire the investment banking firm Skyway Capital Partners to help him emerge from bankruptcy. The main thrusts of Atalaya's argument are that Skyway is not a disinterested party, that Skyway's role will extend beyond mere financial advising into possibly brokering a sale of CL, and that Skyway is not a competent financial advisor. More from the Reader's Michael Miner.
Atlanta Magazine |
11-24-2008 9:57 am |
Industry News
Two New Motions Filed in Creative Loafing Bankruptcy Casenew
Last week, Creative Loafing asked a bankruptcy judge to authorize CEO Ben Eason to hire the investment banking firm that brokered the Reader/City Paper purchase to evaluate the company's business plan, seek new financing, and prepare the company to be sold if necessary, Atlanta Magazine's Steve Fennessy reports. Meanwhile, Eason's largest creditor, Atalaya Capital Management, asked the judge to lift the automatic stay that prevented CL from defaulting on its loan, arguing that the value of the company is falling with each passing day due to the bankruptcy filing and to "downward trends in the advertising industry." Eason tells Fennessy he stands by his decision to expand. "I think it's one of the smartest things we've done," he says. "I'd rather be navigating [the economic downturn] with Washington City Paper and Chicago Reader and [syndicated column] Straight Dope than without them." MORE: The Reader's Michael Miner weighs in, and City Paper consolidates its office into one floor.
Atlanta Magazine |
11-17-2008 12:11 pm |
Industry News
Ben Eason Corrects the Recordnew
Creative Loafing Inc.'s CEO says former staffer Steve Fennessy's coverage of his company's bankruptcy filing is mistaken in several respects. Eason says that Fennessy is "mis-reading the strength of CL's open and resilient culture and how this relates to its financial and journalistic success," and that he is not accounting "for the fundamental macro issues facing media companies and their financial footings." Eason also admits that court documents (pdf) filed last week by Creative Loafing were mistaken: Its July-to-September revenues were $8.3 million -- not $3.5 million, as the document states -- with print revenue declining 15 percent and online sales up 180 percent during that period, on a year-over-year basis.
Atlanta Magazine |
10-21-2008 12:57 pm |
Industry News
Creative Loafing CEO Ben Eason Named 'Business Leader to Watch'new
The St. Petersburg Times |
10-20-2008 9:47 am |
Industry News
Court Filings Shed Light on Creative Loafing's Financesnew
According to a case management summary (pdf) filed in Creative Loafing's bankruptcy proceedings on Monday, revenues are off at the six-paper alt-weekly chain. Atlanta Magazine's Steve Fennessy reports that when CL was looking for financing to purchase the Chicago Reader and Washington City Paper, it projected the expanded company would see revenues of $43 million in fiscal year 2008. But the court filing says that revenue in FY08, ending June 30, 2008, was $35 million, and predicts that sales in the first quarter of FY09 will be only $3.5 million. In other CL bankruptcy news, Washington City Paper has published a statement from one of the company's lenders, Atalaya, which says the bankruptcy filing was "unfortunate and unnecessary," and assures "all interested parties that Atalaya has no intention of attempting to shut down the business." MORE: City Paper editor Erik Wemple talks to the George Washington University student paper The Hatchet about the changes in store as the paper shifts focus.
Atlanta Magazine | Washington City Paper |
10-16-2008 11:43 am |
Industry News
Creative Loafing Bankruptcy Battle 'Getting Testy'new
Atlanta Magazine's Steve Fennessy reports that during Wednesday's bankruptcy proceedings, Creative Loafing's lenders "fired a shot across the bow" at CEO Ben Eason, "saying in court papers that the bankruptcy filing was a gambit by Eason to preserve control of the company and 'dodge' the lenders' 'bargained-for rights to have a say in corporate governance.'" The lenders, Atalaya Funding and BIA Digital Partners, filed a motion (pdf) to reverse the earlier court injunction against them, which prevented them from seizing CL's assets. However, according to Washington City Paper, the judge struck down that motion on Wednesday. "It was a legal maneuver they were doing to get more control," Eason says. "When we filed the bankruptcy, there was a concern that Atalaya or BIA might use the collateral as a part of the bankruptcy to come in the backdoor and use the shares to basically foreclose on the shares and function as the board of directors." MORE: Former Creative Loafing (Atlanta) publisher Michael Sigman weighs in.
Atlanta Magazine | Washington City Paper |
10-10-2008 9:08 am |
Industry News
