Blog Post

Creditors Take Over Philly Papers In $135 Million Deal

Expect even more upheaval at Philadelphia Inquirer, Philadelphia Daily News and Philly.com parent Philadelphia Newspapers. The company, which filed for bankruptcy last February, has now been sold to a group of its senior lenders for $135 million (That total includes $69 million in cash, a $36 million loan, and $30 million in real estate, according to the report in the Inquirer).

Brian Tierney, who led a group of investors who bought the company for $562 million four years ago and had tried to retain control, is out as CEO, although a successor hasn’t been named yet. As for what happens next, the outlook looks grim. The new owners are reportedly asking for $20 million in concessions from the papers’ unions. They promise, however, not to shut down the smaller Daily News.