Buyouts at the Star and other cuts in printed media world

INSIDE MEDIA: Magazines shut down

By David Hatfield, Inside Tucson Business
Published on Friday, November 06, 2009

The Arizona Daily Star lost a handful of newsroom employees Nov. 6 as part of a workforce reduction program in which certain qualifying people were given buyout offers. Among the departures was Ann Brown, who had been the editorial page editor the past four years.

“This was my choice, albeit a tough choice,” Brown said in an e-mail she sent to friends and contacts. “I believe this is a positive for me personally. As many of you know, we have sold our house. This gives me time to move, find another house, and move again. And it’s a chance for me to explore some other opportunities.”

Announcements as to which employees participated in the buyouts was left up to the individuals but Nov. 6 was their last work day. Those in the newsroom say the participants who had revealed they’re leaving included graphics people, photographers and copy editors. Reporters were not eligible for this buyout but at least one writer was being considered.

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Lee Enterprises, the parent company of the Star, gave employees only about two weeks to decide whether they wanted to participate in the buyouts. Qualifiers included being at least a 20-hour a week employee, vested in the employee pension program and at least 55 years old as of Oct. 31.

In announcing the employee reduction plan, Star publisher John Humenik said the goal was to have enough employees take the buyout to avoid layoffs.

Glossy mag gone

By now, readers of Oro Valley/Marana magazine have received their final copy of the glossy magazine. The November issue, which was due to arrive at households last week, is the final one.

Four years ago, glossy magazines serving high-end areas were the rage in Tucson, but now they’re pretty much down to the original Tucson Lifestyle, which currently is combined in a single publication with Tucson Home and Garden, and the DesertLeaf.

Oro Valley/Marana was published by Tucson Newspapers. A similar magazine covering the Catalina Foothills shut down at the end of 2007. A representative at Tucson Newspapers said the decision to shut the glossies was for “cost-saving” reasons.

No more Gold

Saguaro Gold, a monthly full-color coupon book, has suspended operations. According to a representative at the company’s Scottsdale headquarters, the suspension comes after federal officials closed Union Bank in Gilbert on Aug. 14 where Saguaro Gold had a line of credit.

Although the bank’s assets were taken over by MidFirst Bank in Oklahoma City, Saguaro Gold’s representative said their line of credit was frozen. She said the company is trying to find a way to resume operations

Saguaro Gold billed itself as the largest full-color consumer magazine in Arizona, mailed to more than 336,000 households in the Tucson market.

Another one bites dust

The East Valley Tribune, a newspaper that’s been on economic life-support for more than a year, will cease publication at the end of the year. Its publisher, Freedom Communications announced the decision Nov. 2 saying it tried but couldn’t find a buyer for the newspaper.

Freedom, headquartered in Irvine, Calif., filed for Chapter 11 bankruptcy protection Sept. 1. Coupled with the shutdown announcement, Freedom filed its reorganization plan under which it intends to emerge as a company valued at between $400 million and $500 million, carrying debt of $325 million, down from $770 million. The owners are turning over all but 2 percent of the equity in the company to lenders.

Along with the shutdown of the printed product, the Tribune will also shut off its website by Dec. 31.

Contact David Hatfield at dhatfield@azbiz.com or (520) 295-4237. Inside Tucson Media appears weekly.
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