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A Summer Wave of Press InstallsA 70,000 copy-per-hour, six-tower press to be operated on a former U.S. Army complex led a summer wave of press installations. The Standard-Examiner in Ogden, Utah, ordered the shaftless Comet press from KBA North America's Web Press Division in York, Pa. The high-speed, single-width press replaces a 30-year-old Goss Mark II and commercial Goss Suburban press. Each tower will include eight shaftless couples, allowing for a total capacity of 64 pages collect and 48 back-to-back pages of process color, or 32 pages process color and 32 pages of spot color. One tower features heatset printing capability, and the press includes two high-speed 80-page jaw folders, one with quarterfold capability. "We are going to be the highest-quality press in the West with this purchase," says Publisher Scott Trundle. The paper's new 105,000 square-foot production facility is being built on a 1,100-acre complex once part of the Army's Defense Depot. Plant construction began this summer, with delivery of the Comet scheduled to begin next April in order to have the press up and running in time for the 2002 Winter Games in nearby Salt Lake City. Among other recent press-installations:
AdOut AcquiredInsert-advertising giant TC Advertising has acquired J.J. Grace Inc., parent company of newspaper-advertising software-and-service supplier AdOut of Van Nuys, Calif. Baltimore-based TC Advertising says the acquisition "continues the expansion of the marketing and producing solutions we offer our newspaper partners." TC's offerings include inserts, television magazines, special supplements and color comics. Through its AAPS division, AdOut has outsourced the advertising pre-press workflow for several California major-metro dailies, including the Los Angeles Times (TechNews, Jan./Feb. 1999, p. 21). It also developed TheSpecDept.com, an Internet-based ad-design resource (TechNews, May/June 1999, p. 7). "By focusing our individual strengths and sharing, both companies will benefit," says AdOut President and Chief Executive Officer Jeff Turner, who will remain with the company.
Online Aggregators Push AheadSix major newspaper groups have taken equity positions in AdOne LLC. Its aggregated ClassifiedWarehouse.com World Wide Web site now claims a combined print circulation of 24 million, including affiliates in 43 of the top 50 U.S. markets. A.H. Belo Corp., the Journal Register Co., Lee Enterprises Inc., Media General Inc., Morris Communications Corp. and Pulitzer Inc. all made investments in the New York City-based Internet company. Five other newspaper groupsAdvance Publications Inc., Donrey Media Group, E.W. Scripps Co., The Hearst Corp. and MediaNews Groupacquired AdOne earlier this year.
The Rensselaer, N.Y., company now attaches the logo to tens of thousands of classifieds originating from the more than 170 NAA-member newspapers using its online-classified solutions. Research conducted by NAA and Fleishman-Hillard found computer-savvy 21-to-40-year-olds prefer newspaper classified ads and enjoy using the Internet to find what they want. Armed with these findings, NAA created the Bona Fide branding strategy to differentiate newspaper classifieds on the Internet. "The Bona Fide Classified mark is designed to separate, elevate and authenticate newspaper ads amidst the clutter of ads on the Internet," explains Tony Marsella, NAA vice president for classified advertising. "It transfers the trust, loyalty and preference that consumers feel for newspaper classified ads to the new-media world."
Goss in BankruptcyDogged by ongoing questions about its financial health, Goss Graphic Systems in late July filed for a prepackaged Chapter 11 bankruptcy organization plan. Before filing, the 115-year-old Westmont, Ill., press manufacturer reached agreements with its major lenders and shareholders allowing Goss to continue operations during the bankruptcy process. Majority shareholder Stonington Partners LP and other lenders will also inject $100 million in cash and up to an additional $50 million in interim financing to keep the company afloat. "Our agreement permits uninterrupted service to our valued customers," Goss Chairman, President and Chief Executive Officer Jim Sheehan said in a statement. "We are confident that with the support of employees, suppliers, creditors and customers, a successful reorganization will be achieved." In 1996, industrial conglomerate Rockwell International Corp. sold Goss to Stonington Partners for $600 million. Almost immediately, questions began circulating about the spun-off company's financial health. Sheehan predicted Goss will emerge from the Chapter 11 proceedings within several months. In the meantime, the company plans to continue normal operations and production. Goss already has begun cost reductions, "refined its product portfolio" and installed a new enterprise-software system. Under the terms of its restructuring plan, Goss will repay all creditors "in full over time." The company listed assets of $586.5 million and liabilities of $646.7 million in its bankruptcy filing. More than two-thirds of the holders of its $225 million in subordinated bond debt agreed to exchange the notes for a new issue of $112.5 million and stock in the reorganized company.
TechNews Volume 5, Number 5: September/October 1999Return to September/October Home Page |
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