The Philadelphia Inquirer, the Daily News and the website Philly.com will go on auction on Sept. 23, after a current deal with prospective buyers of the media outlet collapsed.
The Inquirer reports the Philadelphia Media Network Inc, wasn’t able to reach a contract agreement with the union that represents the company’s drivers. In a statement, the Newspaper Guild, which represents the editorial employees at the papers, accused the drivers of jeopardizing “thousands of jobs and the entire company by hijacking and erailing the closing process.”
The judge in the case expects the sale to be quick, with final closing in mid-October. In the new auction there will be no provisions allowing the successful bidder to walk away from the sale if it can’t reach contract agreements with the company’s unions – a difference from the previous auction.
The Philadephia Media Network, which includes many of the company’s largest creditors, bought Philadelphia Newspapers LLC at an April auction for $139 million. They’re expected to rebid in next week’s auction.
