Ch 4 KTVX in big money trouble
Jun 8, 2009 20:58:45 GMT -7
Post by tvwatcher on Jun 8, 2009 20:58:45 GMT -7
Newport Television, parent company of KTVX-TV ABC 4 and KUCW-TV CW 30, is instituting companywide furloughs for most employees and plans more layoffs.
It's unclear if any of the layoffs affect Newport's Utah properties, although the furlough program - two weeks of unpaid time off - does.
The planned furloughs come shortly after Dow Jones Newswire announced that Newport Television Holdings LLC of Kansas City, Mo., defaulted on its debt. (Click here to read the story; subscription required.)
A subsidiary of Newport Television bought 56 stations - including KTVX-TV and KUCW-TV, - for about $1 billion from Clear Channel Broadcasting Inc. of San Antonio in March 2008.
"As everyone is aware, the economy continues to struggle and the economic downturn is presenting significant financial challenges to our entire industry," Newport President and CEO Sandy DiPasquale wrote in a prepared statement (PDF). "Like other broadcasters, Newport Television's revenue during the first five months of the year has been materially impacted by this deep recession and, unfortunately, experts are forecasting continued economic weakness for the balance of 2009."
Newport employees are being told to take two weeks of unpaid leave during calendar year 2009, according to the memo. Corporate staff is included in the furlough program. The company's union employees and personnel working under personal contracts - primarily on-air talent - will also "be asked" to take part. Sales account executives will not participate, according to the memo. Individual general managers will "have the authority to modify the program after receiving corporate approval."
It's unclear if any of the layoffs affect Newport's Utah properties, although the furlough program - two weeks of unpaid time off - does.
The planned furloughs come shortly after Dow Jones Newswire announced that Newport Television Holdings LLC of Kansas City, Mo., defaulted on its debt. (Click here to read the story; subscription required.)
A subsidiary of Newport Television bought 56 stations - including KTVX-TV and KUCW-TV, - for about $1 billion from Clear Channel Broadcasting Inc. of San Antonio in March 2008.
"As everyone is aware, the economy continues to struggle and the economic downturn is presenting significant financial challenges to our entire industry," Newport President and CEO Sandy DiPasquale wrote in a prepared statement (PDF). "Like other broadcasters, Newport Television's revenue during the first five months of the year has been materially impacted by this deep recession and, unfortunately, experts are forecasting continued economic weakness for the balance of 2009."
Newport employees are being told to take two weeks of unpaid leave during calendar year 2009, according to the memo. Corporate staff is included in the furlough program. The company's union employees and personnel working under personal contracts - primarily on-air talent - will also "be asked" to take part. Sales account executives will not participate, according to the memo. Individual general managers will "have the authority to modify the program after receiving corporate approval."
