Home
 
Choose Your City
Change City

National Post set to close its doors?

Restructuring media giant Canwest Global Communications says it will beforced to shut down the unprofitable National Post if the newspaper’soperations aren’t shifted into a company that holds its othernewspapers by Friday.

Restructuring media giant Canwest Global Communications says it will be forced to shut down the unprofitable National Post if the newspaper’s operations aren’t shifted into a company that holds its other newspapers by Friday.

The company said in court documents that its creditors refuse to keep funding the Post, which continues to suffer significant operating losses. A hearing on the matter is scheduled for Friday in Toronto.

A number of Canwest divisions, including the Post, are operating under creditor protection. The company said without court approval to move the Post under the umbrella of the Canwest Limited Partnership — which holds a stable of daily newspapers including the Montreal Gazette, Ottawa Citizen and Edmonton Journal — it would be forced to shut down the national paper and lay off its 277 employees immediately.

“Since its inception in 1998, the National Post has never generated a profit and it continues to suffer significant operating losses,” Canwest said in the documents.

Chief financial officer John Maguire said in a statement included in the documents that the Post has racked up about $62 million in losses over the past four years before factoring in interest, taxes, depreciation and amortization.

Canwest filed for creditor protection earlier this year as it succumbed to nearly $4 billion in debt.

 
 
You Might Also Like