Former PC cabinet minister to buy Winnipeg Sun, newspapers in Portage, Kenora

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This article was published 28/05/2024 (561 days ago), so information in it may no longer be current.

TORONTO — Postmedia Network Canada Corp. says it has signed a deal to sell the Winnipeg Sun, the Graphic Leader, and Kenora Miner & News newspapers to the Klein Group Ltd.

Included in the transaction is Postmedia’s Winnipeg commercial print division, all associated digital properties, contracts and other related parts of the businesses.

Financial terms of the agreement were not immediately available.

Postmedia says employees at each of the newspapers are expected to continue in their current roles with no job losses anticipated. It says non-unionized employees will be offered their same job with the Klein Group, while unionized employees will retain their current terms.

Klein Group is headed by former Winnipeg Sun publisher Kevin Klein. Klein was also a Winnipeg city councillor and a Manitoba cabinet minister in the former Progressive Conservative government.

The deal is scheduled to close on or about June 1, subject to conditions.

Manitoba Premier Wab Kinew said he supports the continuation of local media but expressed concern that Klein was, until the October provincial election, a partisan politician.

“Given the heavy, recent partisan involvement of Mr. Klein, I think a lot of Manitobans are probably going to be keeping a careful eye on whether there is that balanced coverage that supports democratic ideals,” Kinew said.

“I always try to be an optimist. However given Mr. Klein’s involvement in a very negative, ugly (election) campaign last year, I’ve got to say I’m skeptical.”

Klein rejected Kinew’s comment.

“It’s disrespectful to the staff that are there. They’re professional journalists,” Klein said.

“We are going to be counting, obviously, on their credibility. We are going to want them to put together the best news stories possible, to provide facts. That’s what people are looking for.”

Klein has been touted as a possible contender for the leadership of the Tories. On Monday, he didn’t rule out a run but said he is focused on the news business.

“I have not made a commitment to running for leadership and … obviously, my life has changed in the sense that we have a very big opportunity today to get back into the world that I once was involved in.”

Postmedia, which owns newspapers across the country including the Montreal Gazette, Ottawa Citizen, Calgary Herald, Edmonton Journal and Vancouver Sun, has struggled financially for years. In its most recent six-month period, ending Feb. 29, the company reported a net loss of $30.7 million.

The company has been dealing with a substantial debt load for several years, coupled with declining print advertising revenue, an issue that affects all legacy newspapers.

“The media industry faces challenging times in Canada,” said Postmedia spokeswoman Kristen Ridley. “We understand that this may occasionally require changes in our operations. Our current model in these three communities was no longer sustainable, so we sought a solution that would ensure each of the papers continued to serve their markets.

“We are pleased to have reached an agreement with a local group.”

A website for the Klein Group does not list the investors involved in the organization.

John Ridd, Unifor Local 191’s representative for the Winnipeg Sun, said unionized staff — numbering about 37 — have been working without a contract for about 18 months.

“We expect the Klein Group to respect the current contract and work with us on negotiating a new collective agreement,” Ridd said, adding Unifor members are well-aware of Postmedia’s challenging financial situation.

“Our members across the country are on pins and needles as to what they are going to be doing.”

While the Winnipeg Sun’s newsroom has shrunk over the years, leaving it with only a handful of editorial staffers, some journalism observers see the sale as a hopeful sign the newspaper will carry on.

“To be honest, it is kind of a positive thing that Klein is willing to step up and make an investment in print newspapers,” said James Turner, journalism instructor at Red River College Polytechnic. “It shows a vote of confidence. That’s a good thing for Manitoba and for Manitoba news readers.”

Gavin Adamson, an associate professor in the school of journalism at Toronto Metropolitan University (formerly Ryerson), said the fact the new ownership appears to be local could be beneficial.

“You can imagine them reaching out to certain kinds of advertisers, funders or sponsors,” he said. “Maybe there can be some reinvigoration from a business perspective because of local ownership.”

Adamson — who worked as a sports intern at the Free Press in the late 1990s — also spoke about the impact Klein’s political leanings might have on the paper. “It makes you wonder about the editorial direction that the title will take. It is worth mentioning because those kinds of conflicts are real. It is worth making them transparent and talking about them.”

He said traditionally publishers don’t necessarily make small editorial decisions. “But they certainly can influence the direction of a news organization in other ways in regards to who they hire, what kind of sponsors or advertisers they might be listening to or the kinds of people they might have lunch with.”

Portage la Prairie Mayor Sharilyn Knox said she’s excited there’s a Manitoba-based buyer for the Graphic Leader.

“I look forward to hearing what they have planned for Portage,” she said.

“We’ve seen the (Graphic) office close here. We’ve seen the loss of jobs, for sure, with Postmedia … Maybe some of those positions will come back.”

The Winnipeg Sun was launched in 1980, months after Southam Newspapers closed the Winnipeg Tribune. In 1999, Quebecor Inc. acquired the Sun newspaper chain, which was later purchased by Postmedia in 2015.

» The Canadian Press and Winnipeg Free Press