Ouch.
The Associated Press hired the worst CEO in the newspaper industry as its 13th chief executive. Its board of directors should be ashamed, as should anyone who works at the news company. Gary Pruitt, the head of McClatchy NYSE: MNI, will move to the AP after destroying the newspaper chain he has run. He will move on with his former firm still in tatters.
Pruitt became the CEO of McClatchy in 1996. The chain took on about $2 billion in debt, a great deal of it to buy rival Knight Ridder for $4.6 billion in 2006. In 2009, it teetered close to bankruptcy. A restructuring of obligations saved it, for a while at least. McClatchy is in financial trouble again. Pruitt leaves for the AP just in time to avoid leading McClatchy as it heads toward a new crisis.Pruitt has decided to leave his company, and its shareholders, at a time when they are in great peril, again.
After his AP appointment, Pruitt said, “The Associated Press is the most important news organization in the world and an essential force in democracy.’ That it true. As such, it deserves a better leader.
via AP Hires Worst CEO in Newspaper Industry – 24/7 Wall St..