Canada's Postmedia Network Inc. said that it has planned to dispose two of its properties in a bid to curb costs and repay debt. Canada's largest English-language daily newspapers would be selling its Calgary Herald building and its Surrey,British Columbia-based Kennedy Heights printing plant. The announcement was made on Monday through the media company's newspapers. Newspapers Vancouver Sun and the Province are produced in the Kennedy plant, while the building in Calgary is home to local newspaper Calgary Herald.
Although Postmedia had arranged for Calgary Herald's operations, talks between Kennedy Heights plant employees and Postmedia are still ongoing with regard to the property sale. In an online statement, Unifor local 2000, formerly the Communications, Energy and Paperworkers Union, said, "Union officers will be consulting with our legal counsel and meeting with members to discuss our next steps."
The Toronto-based media company reported in July a USD112.2 million loss for its recent quarter. It had also operated on a USD95.6 million loss as opposed to its operating income of USD4.1 million it posted for its third quarter last year. Moody's Investors Service downgraded the company's rating around the same time from negative to stable due to decreasing cash flows. Postmedia, like any other company who is carrying newspapers in its portfolio, transitioned to a digital business.
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