[REGIONAL NEWS] Hedge fund’s ambition to dominate newspaper industry raises fear of a local news ‘death spiral’

By Gus Garcia-Roberts, Nick Penzenstadler, Mike Snider and Kevin McCoy | USA TODAY

In a cost-cutting move last year, The Denver Post relocated from the city’s downtown, where the newspaper had been based for more than a century, to quarters in its printing plant in a neighboring county. Reporters and editors found that their new workplace had the feng shui of a run-down casino, with no windows to let in sunlight and a constant ambient hissing from the presses.

But they hoped the move represented an end to the bloodletting that had occurred at the newspaper since hedge fund Alden Global Capital took over in 2010, said Larry Ryckman, then a senior news editor. Layoffs and turnover had left only about 100 journalists in the newsroom, a third of its staff during the paper’s heyday.

That hope was dashed a couple of months after moving offices, when it was announced 30 more positions would be cut. It was then that Ryckman came to believe that the firings would only end when the newspaper closed for good: “We were under attack by our own owners.”

What would follow was a newspaper mutiny, including editorials slamming its own ownership, allegations of censorship and mass resignations.

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