A bankruptcy judge has penned the final chapter for one of Canada’s prominent community newspaper chains, leaving creditors of Metroland Media Group Ltd. with a mere fraction of what they were owed, says Blacklock's Reporter.“The distribution to unsecured creditors including to employees for severance pay is 17 cents on the dollar," Ontario Superior Court Justice Barbara Conway said.This settlement follows court filings revealing Metroland's staggering $78,158,569 debt juxtaposed with a meager $359,000 in available cash.Established in 1981 in Toronto, Metroland once boasted a network of 70 Ontario weeklies and six dailies. However, it succumbed to financial woes as a subsidiary of Torstar Corporation in 2023, resulting in the loss of 605 jobs.Court documents hilight the chain's struggles, noting a substantial decline in readership and a persistent annual revenue drop of over 10% for the past three years, while operational costs remained constant. The traditional print-focused model became unsustainable amidst a seismic shift in news consumption habits.Although the COVID-19 pandemic expedited Metroland's downfall, its underlying challenges were rooted in evolving reader preferences for news sources. Notable creditors included Toronto Star Newspapers ($9.3 million), Toronto Hydro ($42,100), the City of Toronto ($54,741), Canada Post ($13,989), and the National News Media Council ($7,529).The story intersects with broader governmental initiatives, including a 2019 parliamentary endorsement of a $595 million media bailout, featuring substantial payroll rebates for newsroom employees. Last November, cabinet doubled these rebates, leading to an additional $129 million expenditure.However, scrutiny ensued as the Parliamentary Budget Office initiated an unprecedented review of newsroom subsidies, aiming for enhanced transparency and accountability. Budget Officer Yves Giroux demanded specific data from the Canada Revenue Agency to assess the efficacy of these measures.Meanwhile, revelations emerged regarding the lack of tangible job creation resulting from these subsidies, prompting Opposition Leader Pierre Poilievre to denounce the program's continuation. Poilievre lambasted the notion of funneling tax dollars to mainstream media, accusing subsidized news corporations of being beholden to governmental influence.
A bankruptcy judge has penned the final chapter for one of Canada’s prominent community newspaper chains, leaving creditors of Metroland Media Group Ltd. with a mere fraction of what they were owed, says Blacklock's Reporter.“The distribution to unsecured creditors including to employees for severance pay is 17 cents on the dollar," Ontario Superior Court Justice Barbara Conway said.This settlement follows court filings revealing Metroland's staggering $78,158,569 debt juxtaposed with a meager $359,000 in available cash.Established in 1981 in Toronto, Metroland once boasted a network of 70 Ontario weeklies and six dailies. However, it succumbed to financial woes as a subsidiary of Torstar Corporation in 2023, resulting in the loss of 605 jobs.Court documents hilight the chain's struggles, noting a substantial decline in readership and a persistent annual revenue drop of over 10% for the past three years, while operational costs remained constant. The traditional print-focused model became unsustainable amidst a seismic shift in news consumption habits.Although the COVID-19 pandemic expedited Metroland's downfall, its underlying challenges were rooted in evolving reader preferences for news sources. Notable creditors included Toronto Star Newspapers ($9.3 million), Toronto Hydro ($42,100), the City of Toronto ($54,741), Canada Post ($13,989), and the National News Media Council ($7,529).The story intersects with broader governmental initiatives, including a 2019 parliamentary endorsement of a $595 million media bailout, featuring substantial payroll rebates for newsroom employees. Last November, cabinet doubled these rebates, leading to an additional $129 million expenditure.However, scrutiny ensued as the Parliamentary Budget Office initiated an unprecedented review of newsroom subsidies, aiming for enhanced transparency and accountability. Budget Officer Yves Giroux demanded specific data from the Canada Revenue Agency to assess the efficacy of these measures.Meanwhile, revelations emerged regarding the lack of tangible job creation resulting from these subsidies, prompting Opposition Leader Pierre Poilievre to denounce the program's continuation. Poilievre lambasted the notion of funneling tax dollars to mainstream media, accusing subsidized news corporations of being beholden to governmental influence.
