According to a confidential email from the chief financial officer (CFO), Canada's largest newspaper chain requested suppliers to reduce prices by 12% voluntarily. .According to Blacklock’s Reporter, when asked to confirm the request, the CFO did not respond. This request comes after the resignation of the executive chair of Postmedia Network Incorporated..“What percentage in cost savings are you willing to offer?” asked a Vendor Questionnaire. .“Are there any additional incentive programs that you would be willing to offer?”.Postmedia recorded a loss of $74.7 million in the previous year, even after receiving millions of dollars in federal subsidies. The company's current financial year is set to end on August 31..Postmedia publishes the National Post and affiliated newspapers across various locations from Vancouver to Montréal, holding a virtual monopoly in Alberta and Saskatchewan for daily print newspapers. .Since 2019, Postmedia has received the largest amount of federal subsidies from the $595 million federal bailout program..According to the Management's Discussion notes to shareholders, Postmedia Network anticipates receiving an estimated annual share of federal payroll rebates “between $7 million and $8 million.” .Additionally, the company claimed $64.9 million under the Canada Emergency Wage Subsidies, a pandemic relief program that has now finished..In an email addressed to suppliers as “Dear Valued Partner,” CFO Mary Anne Lavallee emphasized the need for the company to cut costs..“Postmedia Network Inc. has recently launched an executive-sponsored company-wide initiative to evaluate external spending by leveraging our collective strengths across all our markets,” wrote Lavallee..“This initiative seeks to ensure we are integrating and growing our business with strategic partners who can, over the long run, partner with Postmedia in driving efficiencies and effectiveness, identify opportunities to accelerate growth and reduce costs to help Postmedia’s performance objectives and ensure Postmedia is receiving the most innovative and competitive solutions you have to offer.”.“Postmedia is requesting your support in offering a 12% price reduction towards our ongoing spend on products and services,” wrote Lavallee. .“We believe that this will further enhance our relationship and position our companies for mutual growth.”.Postmedia has requested that vendors submit voluntary price reductions by July 5..“Thank you for your continued support,” said the Vendor Questionnaire.. Postmedia vendor request .The confidential appeal issued Friday followed the abrupt resignation Thursday of Jamie Irving, executive chair of Postmedia Network. No reason was given for Irving’s departure..In a 2022 submission to the Commons Finance committee, News Media Canada CEO Irving wrote that the federal grants provided were inadequate to address the significant losses faced by the news industry..“Canada’s news publishers are facing an existential threat,” wrote Irving, a New Brunswick billionaire Irving family member..“The pandemic has only worsened the situation as advertisers cut costs or have simply disappeared,” wrote Irving. .“The financial pressures facing Canadian news outlets due to the current market failure are only becoming more dire.”
