McClatchy to sell the SLO Tribune building
March 25, 2017
McClatchy, running in the red for years, is planning to sell The Tribune building on Higuera Street this year, according to a presentation McClatchy made on Feb. 28 to JP Morgan.
In 2015, McClatchy incurred a loss of $300.2 million. Though still in the red, by cutting expenses and selling real estate, McClatchy reduced its losses to $34.2 million in 2016, according to McClatchy’s financial reports.
Last year, McClatchy was able to reduce operating expenses by 6.8 percent. In addition, McClatchy sold a covered garage in Sacramento and a building in Wichita, Kansas.
While McClatchy has cut back on staff and the amount of news it covers, advertising revenues have fallen.
In 2016, advertising revenues were down 10.8 percent compared to 2015. In addition, daily circulation dropped 9.3 percent and distribution of the Sunday paper was down 10.5 percent.
On the upside, online views increased by 26.8 percent.
The publishing company concluded 2016 with approximately $868 million in outstanding debt.