By Olga R. Rodriguez | Associated Press
In a stunning turn of events, the Santa Barbara News-Press, a historic California newspaper and winner of the Pulitzer Prize, has halted its publication after the owner declared bankruptcy. The 150-year-old newspaper had transitioned to an online-only format in April, but faced financial issues leading to its ultimate downfall.
The announcement was made by Managing Editor Dave Mason in an email to the staff, revealing that the company had run out of funds to pay its employees. Mason stated that final paychecks would be issued after the bankruptcy was approved.
As of Monday, the News-Press’ website remained active, but there was no mention of the publication’s cessation or bankruptcy filing. The situation was met with silence upon attempting to contact the newsroom.
The Chapter 7 bankruptcy filing by Ampersand Publishing, the parent company of the Santa Barbara News-Press, disclosed that the company has assets of under $50,000 and debts and estimated liabilities ranging from $1 million to $10 million. A meeting of creditors, who total between 200 and 999, has been scheduled for September 7.
Despite multiple attempts, no response has been received from Anthony Friedman, the lawyer listed for Ampersand Publishing, or Wendy McCaw, the owner of the company.
Santa Barbara News-Press, established in 1855, once boasted a daily circulation of 45,000 and published seven days a week. The newspaper served the affluent city of Santa Barbara, which has a population of 90,000. The paper’s notable achievements include a Pulitzer Prize won in 1962 by editorial writer Thomas M. Storke for his series on the John Birch Society.
McCaw, a billionaire philanthropist active in environmental and animal rights causes, purchased the Santa Barbara News-Press from The New York Times Co. in 2000. She subsequently appointed herself and her fiancé, Arthur von Weisenberger, as acting co-publishers. However, tensions arose when McCaw’s decisions were viewed as compromising the newspaper’s credibility. In 2006, Editor Jerry Roberts and four other top editors, along with a columnist, resigned in protest. Among the grievances were allegations of editorial interference and the inappropriate appointment of the editorial page editor as the acting publisher.
Roberts stated that the closure of the newspaper does not come as a surprise, as its decline had been evident for some time. However, he expressed great sadness over the loss of the paper, emphasizing its significance to the community.
While the closure of the Santa Barbara News-Press is a tragic loss, it is not an isolated incident. Tim Franklin, an expert in local news at Northwestern University’s Medill School of Journalism, noted that the struggle in the news industry is widespread. With giants like Google, Facebook, and Amazon dominating the advertising market, media companies are facing significant challenges in finding a sustainable business model for local news.
The declining state of the news industry is exemplified by recent events, such as the layoffs at the Los Angeles Times and the sale of The San Diego Union-Tribune to MediaNews Group, known for its cost-cutting practices. Moreover, a similar fate befell the Mail Tribune, one of Oregon’s oldest newspapers, citing advertising declines and difficulties in hiring staff as reasons for its closure.
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