Swedish media group Stampen files for reconstruction
Swedish media group Stampen, which among others owns Göteborgs-Posten, has filed for reconstruction.
‘‘We have solid businesses that develops in the right direction. But our debts are still large and our cash flows aren’t strong enough to deal with our weak balance sheet,’’ says Martin Alsander, head of the media group, in a comment Monday.
Stampen has battled major losses over the last couple of years. Last year, the media group could announce an operating profit of SEK 153 million compared to a loss of SEK 406 million in the year before, Stampen writes in a press release Monday.
The media group acquired several newspapers and digital media projects between the years of 2005 to 2012. As the media industry has undergone major changes, these purchases proved to be too costly for Stampen, according to the press release.
Despite an attempt to make the organization more effective, which has included getting rid of several titles, Stampen has been unsuccessful in attracting new capital.
‘‘As owner and chairman of the board, I’m in charge of our history but also our future. For the past two years, we have worked to lower our debt while we at the same time have made significant cost-savings and rationalizations to create a sustainable profitability,’’ says Peter Hjörne, majority stakeholder and chairman of the board at Stampen, in the press release. ‘‘It’s been successful but our debt is still too great and we need the ability to start over so the businesses can continue to live.’’
The reconstruction will cover all of Stampen Local Media, printing company V-TAB, distribution business VTD, Modern Women Media and parent company Stampen AB.
It will not cover OTW, Minnesota Communication, Wallstreet Media, Djungeltrumman, MktMedia and Adapt ADX.StampenStampen Local Media