You know, when the blind, failed king Oedipus was humbled by his hubris, the people of Thebes gently led him away from the plagued city. So can someone gently lead the Aspers away from Canwest? It’s in today’s ROB: “Aspers bid to reclaim newspaper chain.” It’s too depressing to link to. Shouldn’t there be a law that when you crater a company, destroy its share value to pennies and sink it into bankruptcy, you should just leave and let someone else resurrect it?
So, the Report on Business says that Paul Godfrey is looking at bidding on the CanWest newspapers. Good. Maybe responsible management can save them. But this quote kills me:
“The group also includes at least six top CanWest executives willing to run the operation if the bid is successful. “If you take the list of 10 top executives … at least six or seven of them are there,” said one source familiar with the proposal.”
Good grief. Fire the entire board and executive suite, which ran the company into bankruptcy and saw its stock price plummet from $23 a share to $.23 a share before being delisted because it was, well, bankrupt. Can’t anyone see this emporer has no clothes and shouldn’t be rewarded for the dire strait this company is in? Please, Jimmy Pattison, buy it all, then whack all the deadwood. And slash, don’t slice.
Report on Business, Feb. 10 2010
Attached is a story about how Canwest is not paying freelancer writers, except after some duress and arguments with the court. I also know a guy in Regina who took a package from Canwest from their most recent round of layoffs and was advised he could have it lump sum or over several months. He chose several months. Bad choice: he got a letter saying Canwest was broke and he wasn’t getting anything more. I’m not a bankruptcy expert, but shouldn’t there be some simple human consideration for those who suffer from dumb management?
CBC, February 9 2010
Many stories on an effort to buy just three CanWest dailies: Toronto (aka The “National” Post), Ottawa and Montreal, as well as rumors of Alberta’s sovereign wealth fund wanting to buy the two Alberta dailies, and Jimmy (The Ax) Pattison buying the BC dailies. CanWest (why does it even have a voice in this?) is saying it wants to sell the papers as a block to build on those wonderful synergies that have resulted in bankruptcy. I say break em up, get out of the national/monopolistic mode, and go back to the Southam model: local papers run as independent entities reflecting local values, with some sharing of news/features when it makes sense. This might be a golden opportunity for Canadian newspapers to reflect their local characteristics, not the national ones directed from Winnipeg (why, for example, should two pages of the business section of my local CanWest paper, the Leader Post, be a goddamn reprint from the previous day’s Financial Post?) And they wonder why people aren’t reading them.
Toronto Star, January 18 2010
I guess he still has an office somewhere and thinks he’s in charge of something, but Scotiabank straightened him out: the lenders are in charge and are going to get their money back regardless of Leonard Asper’s opinion. The Globe gleefully reported an exchange between the bank and Mr. Asper today on the front page of the Report on Business today. Give the Black Knight credit for spunk, but the truth is the old management is done.
Globe and Mail, January 11 2010
Buried deep down in the story about Canwest’s ongoing financial woes is a note that “According to the filings, Canwest intends to reduce those numbers (of 5,300 employees) by 120 as part of overall restructuring in the current fiscal year.”
Here’s a thought: why not start reducing those numbers from the top, and just work your way down the executive organization chart? After all, these are the bright minds that bought into convergence a decade ago, purchased properties at too high a price (hence their onerous debt load) all the while babbling management-speak about synergies and launching from multiple platforms. After all, in the free market place, shouldn’t bad management pay the consequences of their errors?
“Our Publishing group with a geographic footprint encompassing print, online and mobile audiences and reaching across this country is strong because of the synergies we’ve found by working together, leveraging our strengths and centralizing services that take significant costs out of the business,” said (CEO Dennis) Skulsky, who is now reporting to an independent committee off the Canwest board.
Financial Post, Jan. 8 2010
As CanWest’s bankruptcy goes forward, 20 companies are going over Global TV’s books to see if it’s worth buying (it’s actually not; the creditors/debtors are looking at pennies on the dollar to recover their investment.) There’ll be a separate sale for the newspaper group. Anyway, one interesting suitor is the Pattison Group. Hmmmm, Jimmy Pattison has a well known habit of taking command by firing the new firm’s least competant employees. If my name was Asper, I’d be nervous.
Report on Business, Dec. 3 2009