Gannett shares fall on debt concerns, ad decline
NEW YORK, Feb 2 (Reuters) - Shares of Gannett Co Inc (GCI.N) fell as much as 12.5 percent on Monday after Standard & Poor's said it might cut the U.S. newspaper publisher's debt rating to junk, and after it reported a 36 percent decline in advertising revenue.
Gannett shares fell to as low as $5.05 in early trading on the New York Stock Exchange.
Standard & Poor's on Friday said it might cut Gannett's rating because of concerns about the USA Today publisher's revenue and earnings declines.
A downgrade into junk territory, or non-investment grade, can significantly increase a company's borrowing costs.
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2 comments:
Please consider the rank and file employees at Gannett that have nothing to do with Gannett management's actions or policies.
These people have families to support like everyone else.
It is truly a shame when valued employees are abandoned by corporations mis-management.
Unfortunately this is the way Capitalism works and survives. Companies that refuse to recognize the failure of management, as in the case of the Daily Times, puts employees at risk.
Were one company failes a new company will arise.
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