Portland Newspaper Guild Encouraged by Local Effort to Buy Maine Newspapers

The announced exclusive negotiation period between Blethen Maine Newspapers and Maine Media Investments is good news for the company’s employees and the community, said Tom Bell, president of Portland Newspaper Guild Local 128.

“We are very enthusiastic about this opportunity,” said Bell, whose union represents about 350 employees of the Portland Press Herald in Portland and South Portland and at the Morning Sentinel in Waterville.

He said the Guild hopes to work with the investors to design an ownership structure for the newspapers that includes a significant Employee Stock Ownership Plan or ESOP.

“This industry and this newspaper need to come up with game-changing ideas” said Bell.  “We have always felt that local investors working in partnership with employees who have an ownership stake would be the best way to ensure the future of the company in these challenging times. We have a chance to do that here and it’s very exciting.”

Bell thanked the current ownership for agreeing to negotiate exclusively with the local investment group instead of continuing to accept offers from out-of-state media companies that would not have the same interest in producing high-quality print and online news products for Maine.

“This deal is not a sure thing and the Blethens are taking a risk here,” Bell said. “We appreciate that Frank Blethen and Chuck Cochrane are willing to enter into this process because they know that, if it works out, it promises the best outcome for the employees and the whole community.”

Frank Blethen is the chairman of the board of the Seattle Times Company. Charles C.. Cochrane is president and CEO of Blethen Maine Newspapers Inc., a subsidiary.

Officers of other unions said they support exploring this Guild effort.

"We are looking out for the best options for our members, and we want to keep providing our readers with the best possible newspaper," said Scott Shepherd, local president of Waterville Typographical Union Local 643, which represents workers at the Kennebec Journal in Augusta.

When the Blethens first announced that they would put their Maine properties up for sale, the Guild retained an outside advisor and began looking for local investors.

Guild members paid for an ad in the Maine Sunday Telegram announcing their interest and began to make contact with potential bidders.  

More recently Guild leadership began informal discussions with members of  Maine Media Investments. Now the Guild is looking forward to working with this group of prospective owners, designing a company that will be both profitable and serve the community’s need for a healthy local news operation. Bell was hopeful that an agreement could be reached.

“If everyone follows his self-interest, this will come through,” he said.