National Enquirer Publisher Expected To Come Out Of Bankruptcy
BOCA RATON - (CBS4) - Inquiring minds may want to know this: the parent company for The National Enquirer is expected to come out of its bankruptcy filing stronger thanks to a lighter debt load, the Palm Beach Post reported Monday.
A New York bankruptcy judge approved a restructured plan for American Media, the Boca-Raton based company. The judge slashed the company's debt by $355 million down to $500 million.
American Media President David Pecker addressed the company's plan in a note to employees that said they would turn their focus from paying off debt to growing the business.
"I can promise you this will allow AMI to finally capitalize on all the digital opportunities available for our brands, continue to strengthen our print properties, expand our publishing services efforts and ultimately accomplish what my goal has always been – to build a major media company that will be among the industry's elite," Pecker wrote in the note.
Business experts expressed optimism in the company's future. Among those weighing in is Samir Husni, director of the Magazine Innovation Center at the University of Mississippi.
"Just the mere fact that they survived is a big plus,'' Husni told the Palm Beach Post. ``They've been operating in survival mode for 10 years. It's safe to say that they're out of that survival mode and building toward the future.''
Others, however, blame the company for not doing enough to move with the times by increasing their online presence. Advertisers are going elsewhere and some publishing experts say they don't want to be "associated with that product."
Last month, AMI filed Chapter 11 protection from creditors. Court papers say the company was affected by a "decline in consumer spending on publications sold at retailers' checkout counters."
Source: Palm Beach Post
