Avista can only blame itself for Strib bankruptcy, economist says
"They're blaming the changes in the industry, they're blaming the economy, they're blaming the unions -- when clearly the blame belongs in New York with the managers of Avista," Picard told E&P today.
Picard, a well-known academic expert on media economics who is editor of the Journal of Media Business Studies, argues that the expensive debt amassed by the Avista private equity group is the real reason the newspaper is filing for reorganization.
"This is a company that's still making a profit," he said. "They can't withstand (economic conditions) now because their debts are so high. It was almost all debt in the financing of the acquisition."This isn't the first time we've heard this argument. The unions have also been blaming Avista for the collapse as they struggled to continue slashing staff and salaries to accommodate their cost-saving requests.