Postmedia Network announced Friday it has entered into an agreement to acquire Atlantic Canada’s largest media purveyor, Saltwire Network and The Halifax Chronicle Herald.
Currently under creditor protection, Saltwire – which publishes nearly two dozen titles, including major daily newspapers in Halifax, NS, Charlottetown, PEI, and St. John’s, NL – has been driven to insolvency by its main creditor, Fiera Private Debt Fund. Of its debt load of more than $94 million, almost $33 million of that is owed to Fiera, another $7 million due the Canada Revenue Agency in unpaid HST remittance, and $2.6 million to its employee pension fund.
Postmedia says the potential acquisition aligns with its commitment to preserving local journalism.
Saltwire currently employs about 390 staff and 800 contractors, including about 100 reporters, following ongoing workforce reductions.
“If the transaction can be completed, Postmedia intends to provide the necessary back office resources and operational infrastructure to ensure there continues to be reliable and high-quality local news provided to the affected communities,” said Andrew MacLeod, President and Chief Executive Officer of Postmedia, in a release.
Postmedia said the acquisition is crucial for the long-term sustainability of the regional Saltwire network, “which faces an uncertain future without intervention.”
“Saltwire filed for CCAA protection after years of financial difficulties, underscoring that its current operational model is unsustainable. In order to save critical journalism jobs, we will need the support of the relevant unions to help construct a viable business model,” added MacLeod.
The acquisition is subject to conditions, including union and court approval. Given ongoing financial pressures, Postmedia indicated it’s imperative key conditions be satisfied by the first week in August, with an outside closing date of Aug. 26.
“We urge all stakeholders, including employees and community leaders, to support our efforts. The future of local journalism in the Atlantic provinces depends on everyone’s cooperation in a successful restructuring,” said MacLeod.
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