SaltWire and the Halifax Herald Ltd. applied to the Nova Scotia Supreme Court for creditor protection on Monday.
The largest private media company in Atlantic Canada operates daily newspapers The Chronicle Herald, The Charlottetown Guardian, The St. John’s Telegram, and The Cape Breton Post in Sydney, along with a host of weeklies throughout the region.
With roots going back to 1824, The Chronicle Herald is the oldest independent newspaper in Canada.
Also included in the creditor protection are the associated companies Brace Holdings Ltd., Brace Capital Ltd., Titan Security and Investigation, and Headline Promotional Products Ltd.
“The rise of global entities such as Google and Meta (Facebook) has presented a massive financial challenge to the traditional media industry in both Canada and globally, and the SaltWire Group has been no exception,” says SaltWire president Mark Lever’s affidavit filed with the court.
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“Revenue from traditional media advertising has long supported the production of journalistic content, but in recent years, revenue from traditional advertising has undergone significant change. In addition to these global challenges, Canadian media companies are under pressure from domestic government funded competitors, including the Canadian Broadcasting Corporation and Canada Post."
Lever will step aside as SaltWire's president throughout the creditor protection process as he seeks to pursue the option of securing the company's assets.
SaltWire’s over 100,000 paid digital and print subscribers throughout Atlantic Canada will continue to receive their newspapers and e-editions as the company continues as a going concern through the creditor protection process. Its website, saltwire.com, will continue providing content to its members as well.
The company employs 490 people, along with another 840 subcontractors.
“The debt we were carrying was just not supportable by the revenue,” Ian Scott, chief operating officer of SaltWire, said Monday.
SaltWire owes $24,507,715 to Fiera Private Debt Fund V LP while Halifax Herald Ltd. owes $8,239,634 to the fund.
It also has financial obligations to the Canada Revenue Agency and its pension plans.
”SaltWire Network wishes to assure all stakeholders, including employees, subscribers, advertising clients, and distribution partners, that operations will continue as usual,” reads a written statement issued by the company.
“The filing for creditor protection is a proactive step towards restructuring our finances and operations to build a more resilient and sustainable future.We remain fully committed to delivering high-quality journalism and maintaining the trust and support of our communities as we have for nearly two centuries.”
A hearing is scheduled for Wednesday in Nova Scotia Supreme Court.
