Friday, October 10, 2008

The Columbian moves toward bankruptcy

From the Oregonian:

An untimely expansion into a new $30 million office building has pushed The Columbian Publishing Co., owner of The Columbian newspaper in Vancouver, to the edge of bankruptcy.
The company, which has published the newspaper since 1890, released a statement Wednesday saying it must restructure a loan it secured from Bank of America when it constructed the building, or file for Chapter 11 protection from creditors as it attempts to reorganize.
The paper will keep publishing. Its staff will vacate the new building at 415 W. Sixth St. and move back into its former headquarters in early 2009.

Scott Campbell, the paper's third-generation publisher, said The Columbian is suffering from the same ad revenue declines that have slammed newspapers across the country. But he said the company his grandfather launched in 1921 would survive.

Increasing expenses and decreasing revenue is not a good mix. I wonder what their revenue projections were for real estate ads.