Newspaper & Print Media: Risk of Paper Cuts
Structural changes to the newspaper industry are impacting media companies. The evidence is overwhelming:
- The number of daily papers has declined 14% over the last 20 years
- Circulation has dropped 23% over the same period
- Circulation and advertising revenue has dropped as internet media replaces traditional media
- Numerous firms are facing or have filed for bankruptcy (e.g., Tribune, Philadelphia Newspapers, Reader’s Digest)
- Firms continue to struggle to service debt and comply with covenants
Like many of BBK’s clients, your firm may be struggling with these issues. We have helped clients restructure and/or manage their businesses through the challenges of an industry transformation and have seen several common trends:
- Balance sheets contain too much leverage from prior acquisitions and diversification strategies, indicating the need for debt restructuring
- Employee expenses are not in-line with reduced revenue and may require union contract changes
- Declining demand has left excess capacity, suggesting need for consolidation or closure of facilities
- Poor liquidity necessitates focused cash management while operational changes are implemented
BBK’s unique approach - integrating financial and operational services to deliver comprehensive, hands-on solutions - has been the foundation for remarkable successes. If your firm is facing these challenges, it makes sense to schedule a brief exploratory call where we can discuss how these concerns or challenges could impact you.