The Rocky Mountain News reported today that MediaNews Group’s Denver Post improperly borrowed $13 million from the agency that is owned by both papers in order to cover The Post’s newsroom payroll.
MediaNews executive Jody Lodovic (pictured) responded by saying, “The agency owes us money, too, I assure you. … We ordered all the newsprint in December — the agency owes us millions of dollars. Who cares who owes what? Money goes back and forth all the time.”
The Rocky, owned by Scripps, was supposed to close earlier this month, but is still open.
If the allegation is true, that the Post is borrowing money just to make payroll, it may indicate the company, which owns most of the dailies in the Bay Area, is facing a severe cash crisis. (Photo credit: MNG Web site)