Many media companies are struggling as they try to pivot from print publications to online ones to appeal to readers’ changing habits. F W Media is one of those struggling companies.
Just a month after filing for Chapter 11 bankruptcy, F W has announced that if it’s unable to find a buyer for its Krause Publications within a few months, it will close its Stevens Point, Wisconsin, office. The company moved to Stevens Point from Iola just last spring when its building was taken over by the Iola Car Show.
That closure would cost 66 people their jobs. Most of the employees are involved in design, advertising and editing. Krause Publications, which was purchased in 2002 by F W, primarily produces antique collector publications. F W publishes a wide variety of specialty publications on various interests and subjects.
Even if a buyer is found, employees’ jobs might not be safe. In its notice of the impending closure and layoffs to the Wisconsin Department of Workforce Development, the head of F W noted that even if it finds a buyer for Krause, there could still be layoffs.
F W Media, which is headquartered in New York, is selling off various properties as it struggles to regain its financial footing. According to its bankruptcy filing, it’s debt last year was $105.5 million, while it had just $67.6 million in revenues.
Bankruptcy isn’t always the end of a business. Companies can and do successfully downsize and restructure — emerging healthier than they were before.
However, experienced legal guidance is required throughout the process. Attorneys experienced in handling business bankruptcies can help companies avoid unnecessary costs, legal problems and other issues.