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Suit Alleges 'Inquirer' Seeks State Bailout
By John P. Connolly, The Bulletin
As the already dim outlook for the newspaper industry darkens, a Chester County charter school has filed suit against The Philadelphia Inquirer, claiming the newspaper sought a state bailout.
Vahan Gureghian, chief executive of the managing company for the Chester Community Charter School, filed suit against The Inquirer last week. The suit alleges that failed business negotiations between the school and Inquirer publisher Brian Tierney were the reason for a series of articles questioning the school’s use of public funds. The suit says that The Inquirer made defamatory statements about the school.
Philadelphia Media Holdings denied that Mr. Tierney was in any business negotiations with Chester Community Charter School, and The Inquirer editorial staff defended its coverage of the school.
The suit also alleges that Mr. Tierney sought $10 million from the state to bailout Philadelphia Media Holdings, which owns The Inquirer.
Scott K. Baker, general counsel for Philadelphia Media Holdings, refused comment on the allegation that the company had sought a state bailout.
Chuck Ardo, spokesman for Gov. Edward Rendell, admitted that the governor had spoken with Mr. Tierney “regarding the status of the company,” adding that Mr. Rendell said he would “try to help ... in whatever way he could.”
Mr. Tierney wrote a column in late December, explaining how important his papers are to Philadelphia and the region.
“Our original news reporting sets the table for the entire region's news output, much of which derives from the work we do,” he wrote. “No other news medium — television, radio or Web — can compare to the daily coverage produced by our approximately 400 journalists. Overall, more than 3,000 men and women sell the ads, run the presses, drive the trucks, and make the papers possible.
“This is a tremendous responsibility, and we take it seriously,” Mr. Tierney continued. “Without The Inquirer and Daily News, who would be exposing corruption and incompetence, celebrating athletic and artistic accomplishments, chronicling business successes and failures, and covering our city and region so thoroughly?”
Philadelphia Media Holdings, which owns The Inquirer and the Daily News, began missing interest payments on its debt in June, and proposed restructuring its lending agreements in August.
The papers were sold to Philadelphia Media in 2006, and the company has since struggled under debt, missing payments and beginning plans to sell its building on 400 N. Broad Street.
The Inquirer and Daily News cut 68 jobs in February in advertising, circulation, customer service, finance, as well as marketing and systems departments. Losses in revenue were blamed for the cuts.
John P. Connolly can be reached at jconnolly@thebulletin.us
Vahan Gureghian, chief executive of the managing company for the Chester Community Charter School, filed suit against The Inquirer last week. The suit alleges that failed business negotiations between the school and Inquirer publisher Brian Tierney were the reason for a series of articles questioning the school’s use of public funds. The suit says that The Inquirer made defamatory statements about the school.
Philadelphia Media Holdings denied that Mr. Tierney was in any business negotiations with Chester Community Charter School, and The Inquirer editorial staff defended its coverage of the school.
The suit also alleges that Mr. Tierney sought $10 million from the state to bailout Philadelphia Media Holdings, which owns The Inquirer.
Scott K. Baker, general counsel for Philadelphia Media Holdings, refused comment on the allegation that the company had sought a state bailout.
Chuck Ardo, spokesman for Gov. Edward Rendell, admitted that the governor had spoken with Mr. Tierney “regarding the status of the company,” adding that Mr. Rendell said he would “try to help ... in whatever way he could.”
Mr. Tierney wrote a column in late December, explaining how important his papers are to Philadelphia and the region.
“Our original news reporting sets the table for the entire region's news output, much of which derives from the work we do,” he wrote. “No other news medium — television, radio or Web — can compare to the daily coverage produced by our approximately 400 journalists. Overall, more than 3,000 men and women sell the ads, run the presses, drive the trucks, and make the papers possible.
“This is a tremendous responsibility, and we take it seriously,” Mr. Tierney continued. “Without The Inquirer and Daily News, who would be exposing corruption and incompetence, celebrating athletic and artistic accomplishments, chronicling business successes and failures, and covering our city and region so thoroughly?”
Philadelphia Media Holdings, which owns The Inquirer and the Daily News, began missing interest payments on its debt in June, and proposed restructuring its lending agreements in August.
The papers were sold to Philadelphia Media in 2006, and the company has since struggled under debt, missing payments and beginning plans to sell its building on 400 N. Broad Street.
The Inquirer and Daily News cut 68 jobs in February in advertising, circulation, customer service, finance, as well as marketing and systems departments. Losses in revenue were blamed for the cuts.
John P. Connolly can be reached at jconnolly@thebulletin.us
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