Potential Globe shutdown could cost Times Co.

The New York Times Co. announced several days ago that in an effort to reduce debt and save money, it would attempt to close or sell the Boston Globe if it cannot get concessions from the unions representing many of the Globe’s employees.
According to the Boston Herald, a shutdown or even a sale of the paper could still cost the Times Co. substantial amounts of money.

Experts say the job guarantees and other benefits make the Globe not just costly to run, but also hard to sell. After all, few would-be buyers want to take on open-ended financial commitments.
Neither the Globe nor the Newspaper Guild returned calls seeking comment on the matter.
But John Ellis, a former Globe columnist turned venture-capital investor, this week estimated the paper’s uncovered liabilities at more than $100 million.

According to the article, job guarantees, pensions, and large severance payments could add up quickly on the Times Co. if it were to act on its threat.

To read more, click here.