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.