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Updated as of April 16, 2020

As previously disclosed, McClatchy has been in active restructuring negotiations with the Pension Benefit Guaranty Corporation (PBGC) and our largest secured creditor to address the future of our pension obligations and capital structure. On February 13, McClatchy began a voluntary restructuring process under Chapter 11 of the U.S. Bankruptcy Code.

On April 16, 2020, we announced that we received a non-binding offer to purchase the company through this proven process from funds owned by Chatham Asset Management and Brigade Capital Management. Importantly, under terms of the proposal, we will be able to execute a change in ownership while addressing legacy debt and pension obligations. This offer allows us to execute a change in ownership while addressing legacy debt and pension obligations. Importantly, under terms of the proposal, McClatchy would remain one company.

Importantly, our Chapter 11 and sale process will not impact our business operations or relationship with you or any of our advertisers, in any way. McClatchy and all of our 30 local newsrooms are operating as usual and will continue delivering strong, independent local journalism throughout this process and well into the future. We know that you rely on McClatchy to reach our readers and subscribers across the country, and we have taken all of the necessary steps to ensure we are able to uphold our commitments to you throughout this process:

  • All of our contractual programs and obligations are continuing as usual, along with the operations of our business.
  • There are no changes to your usual company contact, and you should continue to engage with McClatchy as you have in the past, in the ordinary course of business.

Again, when it comes to our relationship with you and the value and service we provide to our advertising partners, nothing has changed.

Over the past several years, we have adapted to a changing news industry, strengthening our data analytics capability, enabling more customized digital marketing plans for our advertisers. McClatchy is now roughly evenly balanced between subscription and advertising revenue, and between digital and print revenue, a much healthier distribution of revenue for an increasingly digital era. We expect to emerge from this process in the next few months even better positioned to meet your needs, continue to expand our digital news offering, and meet our readers and your audiences where they are. We also plan to further advance our digital transformation by investing in our excelerate® platform, providing even more opportunity for our local and regional partners to grow their influence.

We are fully committed to keeping you updated throughout this process. If you have any questions about today’s announcement, please direct them to your usual contact.

Thank you for your continued partnership and trust in McClatchy. We are confident this process will position our business for a stronger future and accelerate our ongoing strategy of digital transformation, unlocking even more potential value to our partners.

Sincerely,

Nick Johnson
Vice President & Head of Advertising, McClatchy

Frequently Asked Questions

1. How will the Chapter 11 process or sale process affect my relationship and contract with McClatchy? Will there be any changes to the terms of my contract?

Nothing changes. In fact, this will make us an even stronger business partner. All of our contractual programs and obligations are continuing as usual, and you should continue to engage with McClatchy as you have in the past, in the ordinary course of business. Our journalists will continue to deliver strong, independent journalism to the communities we serve.

2. Will the advertisements I have confirmed and paid for still run – and on the agreed-upon schedule?

Yes. All of our contractual programs and obligations are continuing as usual. Your advertisements will run on the schedule as outlined in your contract with McClatchy, with no change outside of the ordinary course of business.

3. Why should I continue to advertise with a McClatchy news outlet?

Over the past several years, we have adapted to a changing news industry, increasing our digital footprint and data analytics capability, enabling more customized digital marketing plans for our advertisers. Moving forward, we also plan to further advance our digital transformation by investing in our excelerate® platform, providing even more opportunity for our local and regional partners to grow their influence. We expect to emerge from this process in short order even better positioned to meet your needs, continue to expand our digital news offering, and meet our readers and your audiences where they are.

4. Will there be any changes to advertising pricing structure or any other advertising logistics?

There will no immediate changes to advertising pricing structure or advertising logistics as a result of this filing. We will be touch in the ordinary course of business should there be changes to report, but, in the meantime, all of our contractual programs and obligations are continuing as usual, along with the operations of our business.

5. Am I allowed to terminate my contract before the advertisement runs? If I do, will I be refunded?

Our Chapter 11 and sales processes will not impact our business operations or relationship with you or any of our advertisers, in any way. All of our contractual programs and obligations are continuing as usual.

6. Will this process negatively affect expected viewership?

When it comes to our relationship with our advertising partners and the value and service we provide to our advertising partners, nothing has changed. While we cannot anticipate future viewership, over the past several years, we have adapted to a changing news industry, increasing our digital footprint and data analytics capability, enabling more customized digital marketing plans for our advertisers. We look forward to emerging from this process in just a few months even better positioned to meet your needs, continue to expand our digital news offering, and meet our readers and your audiences where they are.

7. How will I be kept informed during this process? Where can I go if I have additional questions?

We are fully committed to keeping you updated throughout this process. If you have any questions about today’s announcement, please direct them to your usual contact. You can also visit this website, www.McClatchyTransformation.com, for more information throughout this process.