Newsweek is unable to pay its bills, faces eviction

Source: HotAir
Published: Feb 27, 2018
Author: John Sexton
Post Date: 2018-02-27 21:04:29 by Tooconservative
Views: 3182

When we checked in with Newsweek last week, the magazine had just published a news article critical of the magazine’s owners. That article only saw the light of day after a number of reporters and editors threatened to quit if it were spiked. It came after two top editors were fired and a raid based on an investigation by the Manhattan District Attorney. Today, the Daily Beast reports the struggling magazine is unable to pay its rent and may face eviction.
Guardian Life Insurance, the sub-landlord for the company’s downtown Manhattan office, informed International Business Times Inc. in late November that it owed several hundred thousand dollars representing “unpaid, delinquent rent and additional rent.”

According an affidavit filed in New York County court in mid February, Guardian claims IBT currently owes the landlord $303,466 in rent…

The company had stopped paying other bills months ago, racking up what Guardian claimed in early December as an additional $309,229 invoice for various utilities and fees.

IBT stopped paying its electric bill in July 2016, stopped paying for condensed water in September 2016, and lagged in paying rent on-time every month since July 2016—resulting in thousands of dollars worth of late fees.

As you might imagine, this dispute ended up in court. The landlord is demanding the company pay all back rent, fearful that it is about to go out of business. Newsweek is claiming it tried to settle that debt and its payment was rejected by Guardian (the landlord). Guardian admits Newsweek paid a portion of the money it owed but says it never paid the rest, an amount over $100,000. Meanwhile, Newsweek sought a temporary order to protect the company from being evicted:

Newsweek (which used to be owned by IAC, parent company of The Daily Beast) also got a temporary so-called “Yellowstone” restraining order to keep the company from being evicted…

The temporary restraining order runs out on Wednesday, allowing Guardian to take legal action against IBT that could result in potential eviction.

A real estate law expert who looked at the various filings told the Daily Beast, “From all that appears, the subtenant [Newsweek] doesn’t have the money to pay and is trying to conjure up ways to delay eviction.”

The company has been laying off staff last week and this week and, according to sources who spoke to the Beast, editors were told more layoffs were imminent. The NY Post has a story about the high-profile firings which took place over the past few days:

Gersh Kuntzman — a veteran editor who had grilled the magazine’s owners at a town hall meeting about the Manhattan district attorney’s raid of Newsweek’s offices last month, reportedly over alleged ad fraud, IRS tax liens and ties to a California-based church — was fired Friday.

On Tuesday, national editor John Seeley was also let go, sources said. One insider said the bloodbath is not over in the wake of a stunning expose by Newsweek reporters and editors last week that detailed how Olivet University, a Bible college affiliated with Newsweek’s corporate parent, offered free ads to Dutchess County officials as it sought tax breaks and permits for a new university there.

“They’re thinning the herd,” said a source.

Given all of this, it certainly doesn’t sound as if this is a company likely to survive. But never underestimate the market for garbage hot takes that tell a segment of readers exactly what they want to hear.

Poster Comment:

Sweet. First the NYSlimes had to try to find a buyer for the Boston Globe, then they had to rent out 6 floors of their big HQ in NYC. Now we an old liberal flagship, Newsweek, going down for the count.

Post Comment   Private Reply

#1: BorisY    To: Tooconservative (#0)

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boris

BorisY posted on 2018-02-27 21:22:48   Reply   Private Reply

#2: no gnu taxes    To: Tooconservative (#0)

While the GOP campaign founders, Gore solidifies his lead

Democratic presidential nominee Al Gore leads Republican rival George W. Bush by twelve points, according to a new Newsweek poll conducted Sept. 14 and 15. Among registered voters, Gore holds a 50 percent to 38 percent advantage, statistically unchanged from his 47-to-39 percent edge in last week’s poll.

no gnu taxes posted on 2018-02-28 06:40:52   Reply   Private Reply

#3: Hondo68    To: no gnu taxes, Presidnet Al Gore, *2020 The Likely Suspects* (#2)

Democratic presidential nominee Al Gore leads Republican rival Donald J. Trump by twelve points, according to a new Newsweek poll conducted Sept. 14 and 15. Among registered voters, Gore holds a 50 percent to 38 percent advantage, statistically unchanged from his 47-to-39 percent edge in last week’s poll.

Fixed it up for ya by updating to 2020, and adding New York Values.

Gore landslide. Dick Nixon made a comeback win in '68 after his loss in '60 too.

Hondo68 posted on 2018-02-28 11:53:45   Reply   Private Reply

#4: sneakypete    To: Tooconservative (#0)

Who says there is never any good news?

sneakypete posted on 2018-02-28 15:06:24   Reply   Private Reply

#5: Liberator    To: Tooconservative (#0)

I hadn't heard the news on the NY Times being forced to find a Buyer for its redheaded step-child, the Boston Globe. This isn't the first time they had to beg for adoption of its New England Leftist-Propaganda subsidiary, is it?

Didn't know they were also forced to rent out space. The Old Grey Hag's war on Trump and conservatives is taking a yuge toll on them (as well as on CNN.)

Newsweek going down in flames? EXCELLENT. But boo-hoo -- Yahoo will be saddened as their "news"splash-page had often used their crapaganda as daily "news."

Liberator posted on 2018-02-28 15:30:16   Reply   Private Reply

#6: Liberator    To: no gnu taxes (#2)

Democratic presidential nominee Al Gore leads Republican rival George W. Bush by twelve points, according to a new Newsweek poll conducted Sept. 14 and 15. Among registered voters, Gore holds a 50 percent to 38 percent advantage, statistically unchanged from his 47-to-39 percent edge in last week’s poll.

HA!! A retrospective on BS polls by Dem-Leftist sponsor, Newsweak. (How much DID these fake polls actually alter elections? And were they done so to mask massive Democrat election fraud??)

That Gore v Dubya poll headline demonstrated just one more historical case that reinforces the FAKE NEWS of so-called "heirloom" outlets.

Trump has exposed and discredited the entire MSM for what it's always been -- a Democrat-Marxist-Globalist Ministry of Propaganda Machine. He is especially helping to destroy these "heirloom" outlets.

This conspiratorial web of deceit; these Fake News Factories will NEVER recover.

Liberator posted on 2018-02-28 15:42:00   Reply   Private Reply

#7: Tooconservative    To: Liberator (#5)

I hadn't heard the news on the NY Times being forced to find a Buyer for its redheaded step-child, the Boston Globe.

NYSlimes: New York Times Company Sells Boston Globe, 08/2013

Didn't know they were also forced to rent out space. The Old Grey Hag's war on Trump and conservatives is taking a yuge toll on them (as well as on CNN.)

Politico: New York Times to vacate 'at least eight floors' in Manhattan headquarters, 12/2016

Newsweek going down in flames? EXCELLENT. But boo-hoo -- Yahoo will be saddened as their "news"splash-page had often used their crapaganda as daily "news."

I still want to piss on all their graves. Hence, this gloat thread.     : )

Tooconservative posted on 2018-02-28 16:54:49   Reply   Private Reply

#8: Tooconservative    To: sneakypete (#4)

Who says there is never any good news?

Best news about Newsweek in a long time, I'd say.

I enjoyed the snarky headlines about "Newsweek tries to find a buddy's couch to crash on".

Anyway, we've predicted and hoped for the demise of Newsweek and Time and all the others for a long time. Newsweek falling apart is good news. I do hope it doesn't hurt their current owner, IBD. They publish some very good articles through their own publishing and online outlets; I post some of them here.

Tooconservative posted on 2018-02-28 16:58:12   Reply   Private Reply

#9: Liberator    To: Tooconservative (#7)

I still want to piss on all their graves. Hence, this gloat thread. : )

As typical sado-masochistic libs, they might actually enjoy that.

;-P

Liberator posted on 2018-02-28 17:02:44   Reply   Private Reply

#10: BorisY    To: All (#1)

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BorisY posted on 2018-02-28 18:56:49   Reply   Private Reply