O’Shea requests Alden reps appear at council hearing
A Chicago alderman on Wednesday called for representatives of hedge fund Alden Global Capital, Tribune Publishing’s largest shareholder, to appear at a City Council committee hearing to talk about whether the company plans to invest in local journalism.
Ald. Matt O’Shea, 19th, introduced a resolution saying Alden Global Capital acquiring a controlling interest in the Tribune is “troubling because of its well-documented history of exacerbating financial problems by extracting short-term profits from already lean operations by dramatically slashing newsroom jobs and denying employees fair wages and benefits.”
O’Shea called on Alden to “invest in Tribune Publishing and its newspapers so that they may more expansively perform their role in communities.” And he requested that representatives of the company appear before a City Council committee to discuss their plans for the Tribune.
The resolution is nonbinding, and aldermen have no power to compel company officials to appear for a hearing. O’Shea said he hopes to hold a hearing as soon as possible in the council Workforce Development Committee.
An Alden representative did not return a call seeking comment.
Alden, a secretive New York hedge fund with a reputation for dramatic cost-cutting, took a 32% stake in Tribune Publishing in November, mostly by acquiring former Chairman Michael Ferro’s stake.
Two Alden representatives subsequently were added to the newspaper company’s board, expanding it to eight members. As part of an agreement, Alden is restricted from increasing its stake in the company to more than 33% until June 30.
Launched in 2007, Alden owns about 200 publications through an operating company now known as MediaNews Group, formerly Digital First Media. The chain has come under fire for sweeping layoffs at its newspapers, including major dailies such as the Denver Post, San Jose Mercury News and the St. Paul Pioneer Press, as well as smaller weeklies.