Amid a pension-funding shortfall, tronc’s reported deal to buy a big celebrity magazine has been trashed.
The peculiarly named Chicago-based company that owns the Union-Tribune has had some financial fessing up to do before next month’s shareholders’ meeting.
“The San Diego Union-Tribune, LLC Retirement Plan is currently underfunded,” admits a March 8 tronc disclosure filing with the federal Securities & Exchange Commission. “As a result, our pension funding requirements could increase due to a reduction in the plan’s funded status. The extent of underfunding is directly affected by a variety of factors, including weak performance of financial markets, declining interest rates, changes in assumptions or investments that do not achieve adequate or expected returns, and liquidity of the plan’s investments.”
Last week, after days of speculation regarding the purchase by tronc of Us Weekly for $100 million from the publisher of Rolling Stone, the deal mysteriously collapsed.