Former Tory cabinet minister to buy Winnipeg Sun, two other newspapers

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This article was published 27/05/2024 (491 days ago), so information in it may no longer be current.

Kevin Klein, a former Manitoba Tory cabinet minister and Winnipeg city councillor, is leading a group that has a deal in place to acquire the Winnipeg Sun and two other newspapers from Postmedia Network Inc.

No financial details of the sale that includes the Graphic Leader (Portage la Prairie) and Kenora Miner and News (Ontario) were disclosed Monday.

“In an age where information is abundant and easily accessible, the role of local journalism is more crucial today than ever before,” Klein, the president and CEO of Klein Group, said in a statement Monday. He did not respond to requests for comment.

Postmedia, which owns newspapers across the country including the Montreal Gazette, Ottawa Citizen, Calgary Herald, Edmonton Journal and Vancouver Sun, has struggled financially for years. In its most recent six-month period, ending Feb. 29, the company reported a net loss of $30.7 million.

The company has been dealing with a substantial debt load for several years, coupled with declining print advertising revenue, an issue that affects all legacy newspapers.

“The media industry faces challenging times in Canada,” said Postmedia spokeswoman Kristen Ridley. “We understand that this may occasionally require changes in our operations. Our current model in these three communities was no longer sustainable, so we sought a solution that would ensure each of the papers continued to serve their markets.

“We are pleased to have reached an agreement with a local group.”

A website for the Klein Group does not list the investors involved in the organization.

“We are pleased to have reached an agreement with a local group.”–Postmedia spokeswoman Kristen Ridley

Winnipeg Sun non-unionized employees will be offered their same job with the Klein Group and unionized employees will “retain their current terms as presently contracted,” a news release said Monday.

Postmedia’s Winnipeg commercial print division and all associated digital properties and contracts are included in the sale, which is scheduled to close June 1, subject to certain conditions.

John Ridd, Unifor Local 191’s representative for the Winnipeg Sun, said unionized staff — numbering about 37 — have been working without a contract for about 18 months.

“We expect the Klein Group to respect the current contract and work with us on negotiating a new collective agreement,” Ridd said, adding Unifor members are well-aware of Postmedia’s challenging financial situation.

“Our members across the country are on pins and needles as to what they are going to be doing.”

While the Winnipeg Sun’s newsroom has shrunk over the years, leaving it with only a handful of editorial staffers, some journalism observers see the sale as a hopeful sign the newspaper will carry on.

“To be honest, it is kind of a positive thing that Klein is willing to step up and make an investment in print newspapers,” said James Turner, journalism instructor at Red River College Polytechnic. “It shows a vote of confidence. That’s a good thing for Manitoba and for Manitoba news readers.”

Gavin Adamson, an associate professor in the school of journalism at Toronto Metropolitan University (formerly Ryerson), said the fact the new ownership appears to be local could be beneficial.

“You can imagine them reaching out to certain kinds of advertisers, funders or sponsors,” he said. “Maybe there can be some reinvigoration from a business perspective because of local ownership.”

Adamson — who worked as a sports intern at the Free Press in the late 1990s — also spoke about the impact Klein’s political leanings might have on the paper. “It makes you wonder about the editorial direction that the title will take. It is worth mentioning because those kinds of conflicts are real. It is worth making them transparent and talking about them.”

He said traditionally publishers don’t necessarily make small editorial decisions. “But they certainly can influence the direction of a news organization in other ways in regards to who they hire, what kind of sponsors or advertisers they might be listening to or the kinds of people they might have lunch with.”

Klein had previously served as publisher of the Winnipeg Sun. He also worked for now-disgraced former fashion mogul Peter Nygard and for MTS, where he was “responsible for the creation of a new digital division,” Klein’s personal website states.

“There’s nothing to say you can’t be a publisher and be involved in politics.”– Chris Adams

From 2018 to 2022, he represented Charleswood-Tuxedo-Westwood at Winnipeg city hall. He finished third in the 2022 mayoral race.

Elected to the Manitoba legislature in a 2022 Kirkfield Park byelection, Klein lost the seat in October’s provincial election to NDP candidate Logan Oxenham. Klein held the cabinet role of environment minister from January to October 2023.

In a Free Press interview earlier this year, Klein said the election results are a clear indication the Tories need to rebuild from the ground up. “These are big challenges, and I’m strongly considering taking them on,” he said at the time.

Chris Adams, a political studies professor at the University of Manitoba, said Klein’s inclination to run for the now vacant provincial party leader role should not preclude him from owning a newspaper.

“There’s nothing to say you can’t be a publisher and be involved in politics,” Adams said. “Some might wonder if the papers would be neutral should he be successful in a bid for the party leadership. Maybe at that point he sells off the paper or remains the owner, but doesn’t get involved at all with the editorial work.”

Turner worked at the Winnipeg Sun as a reporter between 2011 and 2013, while Klein was publisher.

“Never once did I hear from my editors that the publisher wants this or the publisher wants that story written,” said the RRC Polytech instructor. “I think he understands the role of editor independence, as far as I’m aware.”

Klein has written a regular column for the Sun in recent months.

‘Unique model’

“This sale represents a new and unique model for these newspapers. While we have sold our ownership interest, we will continue to provide some back-office support to the new owners while also providing Postmedia content to supplement local coverage,” Postmedia CEO Andrew MacLeod said in a note to employees.

“This is a model that is unique to a distinct market where we have no other geographic presence — the papers were no longer sustainable for us, and we were able to attract a local group with a commitment to keeping operations going.”

MacLeod said the transaction is not indicative of a wider strategy, adding there were “no other changes to Postmedia’s business to announce at this time.”

Portage la Prairie Mayor Sharilyn Knox said she’s excited there’s a Manitoba-based buyer for the Graphic Leader.

“I look forward to hearing what they have planned for Portage,” she said. “We’ve seen the (Graphic) office close here. We’ve seen the loss of jobs, for sure, with Postmedia … Maybe some of those positions will come back.”

The Winnipeg Sun was launched in 1980, months after Southam Newspapers closed the Winnipeg Tribune. In 1999, Quebecor Inc. acquired the Sun newspaper chain, which was later purchased by Postmedia in 2015.

— with files from Carol Sanders

martin.cash@freepress.mb.ca