Jason Sandford
Jason Sandford is a reporter, writer, blogger and photographer interested in all things Asheville.
There’s little doubt that more consolidation is on the way between the Gannett-owned newspapers in Asheville and Greenville, loyal reader Jenny tells us:
I know someone who is very senior who works at Gannett’s HQ in McLean, VA. He has told me that this is the “model” they are moving to in adjacent geographic markets like WNC and Upstate SC, and that our area is one of several that have been identified for the “bureau” model. This seems to make a lot of sense business-wise… we have already seen the start of this here and the editorial side will follow sooner rather than later. My Gannett source also says they are looking to sell real estate assets, so perhaps the art deco Citizen-Times building downtown will get a new use if it is sold and redeveloped. That parcel, along with the old printing plant on Sardis Rd. could fetch the company some much needed money. Not sure of the timing of all this, but things are definitely in the works. I’ll let you folks know if I learn any more info.
If that’s not enough, look at the news out today about Gannett’s earnings:
Gannett reported Friday that earnings in the fourth quarter 2008 were $158 million, or 69 cents per diluted share, compared to earnings in the fourth quarter 2007 of $245.3 million, or $1.06 per diluted share. The results include $36.1 million in after-tax severance expenses, a result of Gannett’s effort to reorganize and reduce its payroll costs.
Revenue in the quarter declined 8.5 percent to $1.74 billion from $1.9 billion in the year-ago period. Publishing advertising revenue slumped 23 percent. Circulation revenue dropped 3.4 percent. Broadcasting revenue edged ahead 0.4 percent.
Gannett said that the results were preliminary since the company is still calculating the write down of goodwill and other assets that could reach $5.2 billion after-tax. In the year-ago period, write downs totaled $50.8 million.
In the words of one Gannett Blog reader:
“Friends, this does not look good at all. I don’t want to be a doom sayer, but I would expect another deep round of layoffs soon. Plan accordingly.”
If they are going to sell the art deco building, it doesn’t make sense for them to make any capital improvements to it. That said, I am guessing that Hatchet Hammer is moving his office from the third floor to the first floor so they can get started on the long-awaited remodel of his office. Yes folks, that’s right. Since Hachet Hammer arrived in Asheville in late 2007 he has had plans to remodel and renovate the third floor. The architects renderings were drawn up over a year ago. Another case of the higher ups not caring about those lowing people that actually do the work.
First they layoff, then they rehire the same positions? And we think the banking business is screwed up?
Ah yes, I do remember the asbestos flyer …
1930s, that’s right, thanks Ash 😉 I knew it was either very late- or early-century … still a lot of history to be lost if something were to happen to it, asbestos or not. I always loved hearing the ghost stories about the place 🙂
Any buyers of the old Art Deco building that the newspaper sits in will have to clear out a lot of asbestos. The building is home to several areas of concern. There used to be a document in the break room showing where all the danger zones are. It was a way of Gannett saying we told you there was a danger did you not see the flyer.
Anyway, What is with Randy Hammer moving into the Ad Directors office on the first floor?
Lena, it will be said if they get rid of that building. The Citizen-Times moved into that location in the 1930s, I believe. The building, when it first opened, was considered to be ultra-modern, and it housed the Citizen, the Times and WWNC radio station. there may be some historic value to it from an architectural standpoint, as well.
Wow. Just wow. If Gannett was to sell that building, the entire history and legacy behind the Asheville Citizen and the Asheville Times will disappear. The newspaper’s been housed there since what, 1890-something? The C-T were merely become a distant memory for those of us still around to remember it. Sounds like one day I’ll be taking Levi to see a high-rise condo that — — USED to be where mommy worked.
Very sad.
For those left at the Citizen-Times, be careful of accepting a position (if offered) in Greenville "when" they do merge. The pressmen that took positions in Greenville are very sorry they did. Big mistake. They are often told they are "not pulling their weight"…and they have to "step it up." They now wish they had taken the severance package. Gannett is looking for ways to fire instead of lay-off. Remember if you start a new position, it gives them a 90 day window to let you go.
Watch your back!