"For the first time since he acquired a majority stake in Lee, Hoffmann spoke on an earnings call Thursday, sharing that the company is undergoing a "decisive transformation." Along with a change in top leadership, the company has started to invest more resources in local coverage and is eyeing opportunities for expansion - a reversal from the past several years, which have been marked by local cuts."
""What we heard were gaps in local news coverage, areas where communities felt underserved. We've already begun to address those gaps by reinvesting in local journalism, including adding reporters in key markets to fill those holes," Hoffmann said. "That work, we believe, is foundational to who we are, and it's where our turnaround begins.""
"Hoffmann officially took control of Lee's board in February he and other investors contributed $50 million. As a result of the deal, which was first announced in December, former president and CEO Kevin Mowbray stepped down, and Lee's lender, BH Finance, agreed to reduce the annual interest rate of Lee's debt to 5% for the next five years, saving the company tens of millions of dollars."
"To cut costs, Lee has reduced corporate overhead and "simplified" its operating model, Hoffmann said. Forbes that the company has consolidated payroll, eliminated a third of the board, cut print days at certain papers and started sharing services like legal and marketing across papers."
Lee Enterprises is undergoing a transformation marked by reduced corporate overhead and increased investment in local coverage. David Hoffmann, who took control of the board after contributing $50 million, described the shift as foundational to a turnaround. Leadership changes followed the investment, including the stepping down of former president and CEO Kevin Mowbray. Debt costs were lowered through an agreement with BH Finance, reducing the annual interest rate to 5% for five years. Hoffmann and top leaders held town hall meetings at multiple newsroom locations, identifying gaps in local news coverage. The company began reinvesting by adding reporters in key markets and simplifying its operating model, including consolidating payroll, cutting board size, reducing print days, and sharing services across papers.
Read at Poynter
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