Spiraling Gannett, Owners of the Projo, Offloads $450M Pension Obligations

Spiraling Gannett, Owners of the Projo, Offloads $450M Pension Obligations

Ray Schultz at Media Post is reporting that Gannett Media Corp. has transferred $450 million of its pension liabilities to two unnamed insurers, the firm said in a filing with the Securities and Exchange Commission. 

In addition, it will use a portion of its assets to purchase annuities from the two insurance companies.

Gannett claims pension benefits will not be reduced.

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“According to the company's most recent 10-K filing, the company froze benefit accruals for the Gannett Retirement Plan on Aug. 1, 2008, except for a select group of union employees. Gannett Co. and its subsidiaries have multiple U.S. pension plans, along with one U.K. pension plan,” reports Pension and Investments.

Gannett has refused to disclose the name of the insurers who will have responsibility for payments, administrative, and customer service as of November. 1. Gannett will have no financial responsibility for those benefits after that date.

According to Media Post, “The employees include 'certain U.S. retirees and beneficiaries.' The filing does not state the number of employees.”

 

Stock Drops 68% From 52-Week High

The stock of the company has plummeted, and the company is implementing major layoffs.

The Gannett stock has plunged from a 52-week high of $7.05 to a Friday close of $2.20 — a 68% loss in value.

According to numerous media sources, including Poynter, the company is laying off 400 or more and the staff cutting has hit the Providence Journal — a newspaper that has been decimated by layoffs, buyouts and forced retirements over the past decade.

In recent weeks, the Providence Journal slashed its community calendar and the business feature - people on the move. GoLocal has filled the void and is now publishing both features.