June 16, Friday

Here it is, another monthly anniversary of the initial, September 16 announcement of the Star-Bulletin's closure. Still hard to believe, although things appear to be breaking loose as the June 19th deadline approaches.

The Star-Bulletin reported Thursday morning that a hastily called "status conference" before federal Magistrate Judge Barry Kurren on Wednesday afternoon resulted in an agreement to drop previously announced requirements for the preliminary proposals due on Monday from prospective bidders. Since no financial information has been provided by Gannett and Liberty Newspapers, interested parties are no longer being asked to put a dollar value on their bid or their intended investment. The shift was apparently prompted by Peter Wagner's story last weekend, and by grumbling among other potential bidders, including participants in the Star-Bulletin ESOP planning.

Peter's story on Thursday also reported that island auto dealer Mike McKenna has withdrawn from one potential bidding group, leaving former Hawaii Congressman and media owner Cec Heftel as the key mover in that group, as rumored previously. Another potentially interested party is Ogden Newspapers, Inc., which owns the Maui News and dozens of other publications. And Ogden counts a magazine on vintage farm equipment among its properties, along with another Topeka-based zine called Capper's:

CAPPER'S columns include the well-loved Reader to Reader, in which subscribers help each other find old friends, family, books and songs, and plan for reunions. Garden Clippings presents gardeners old and new with timely advice and suggestions for new plantings. Medical advice from Dr. Paul G. Donohue and a financial column by Bruce Williams are reader favorites. Reader questions are answered in Social Security Connections.

But rumor is that they're nice people, so things could be worse.

Speaking of worse, it seems that what I reported as a "nightmare" last month may have had more than a bit of truth, with the word that a representative from the Washington Times was due to arrive in Honolulu sometime this week on a due diligence mission. If true, it confirms the potential down side of a successful sale of the paper. Some would rather see the paper die gracefully instead of going Moonie.

More disclosures by or about prospective bidders is expected tomorrow and Monday.

Dave Donnelly stopped at my desk to say that he check this page every day while in San Francisco. "It's the only way that I could find out what was happening," he said, adding that he now knows much more about Buster than he ever wanted to know about any cat, not being a cat fan himself.

Sorry, Dave, but at while I'm sitting here at 5 a.m. trying to find thoughts for the day, the cats are sometimes the only available props. But thanks for the feedback anyway.

 

June 17, Saturday

9:01 a.m. Sirens are screaming again as ambulances make their way down the coast towards Swanzy Beach Park in Kaaawa, where an Army medical evacuation helicopter has just landed. They land here and pick up patients ferried by ambulance from farther along the coast, and then fly them to Queen's hospital in downtown Honolulu. We watched from our living room as the helicopter flew a pattern along the coast before touching down. Nine minutes later, it's airborne again and heading for town. This narrow windward highway has claimed a few more victims, it seems. Just another Saturday on the Windward side of Oahu.

There are some who are now becoming resigned to the prospect of the a wreck in the attempt to market the Star-Bulletin. One previously optimistic reporter and observer of the process said yesterday that he's no longer predicting even a 15 percent chance of a positive outcome. The general mood doesn't seem to have dropped that far, but this may be a leading indicator.

Folks are now looking at summer vacation schedules and wondering if the paper will be here when they return. Should you clean out your desk before leaving? Take valuables with you? Disappear story notes? Not a great backdrop for a bit of summer family frolicking.

Meanwhile, as Star-Bulletin staffers were preparing to submit a letter of interest to the newspaper brokers by Monday's deadline, word went around that Gannett has refused to deal with the ESOP group and will not permit further disclosure of information to the group, even under the protection of a court-monitored confidentiality agreement.

So much for their "good faith" efforts.

 

June 18, Sunday

It was a bittersweet evening at SPJ-Hawaii Excellence in Journalism awards presentations last night.

The Star-Bulletin again took more than our share of awards, both in the newspaper and "open" categories, but we were all aware that it might be our last opportunity to strut our stuff. It's tough to face that fact, especially in the midst of celebrating our wins. "If you can't beat 'em, then close 'em down," seems to be the Gannett mantra in our case. At least that's the way it looks from where we sit.

Awards spread across the Star-Bulletin's table.

S-B staffers enjoying the results.

 

It may have been pure coincidence, but the contingents from the contingents from the Star-Bulletin and Advertiser ended up at opposite ends of the room, with other media filling the tables in between. Anyone who thinks there isn't any competition between our two newspapers would have been quickly disabused of that fantasy last night.

Before the award presentations got underway, I got some bad news--word that there will probably be no local group making a bid for the Star-Bulletin. The group loosely formed around former Congressman Cec Heftel has fallen apart and will probably not even put in an initial expression of interest, according to this source, who had been meeting with the Heftel group. And no other local group appears to be actively interested, he said. That was a sobering start to the evening, and the news echoed in my mind throughout the night.

We may know more after tomorrow's deadline passes, but only if a bidder goes public. No word is expected from the broker handling the deal, at least until results are presented to the court.

 

June 19, Monday

Reports of the SPJ awards are hitting print. The Advertiser has a story today, and the S-B has one in today's breaking news section, which will be shifted to the regular edition later in the day.

This is deadline #1 in the sale process. Any interested potential bidders are to indicate their interest by today. It's likely to be strange in the newsroom today since no one will have any idea yet of what's going on. Hopefully the ESOP group will get some informal indication from any interested parties.

This is also the day known as Juneteenth, which celebrates the day in 1865 that word reached Texas that slaves had been officially declared free. Emancipation day.

Okay, Dave, we now recognize that we're not all cat lovers. Inexplicable, but apparently true. So please don't click on Buster's picture unless you want more news of the feline variety.

 

June 20, Tuesday

It was about what we expected. A long Monday with many questions, small amounts of information emerging on those who are expressing interest in the Star-Bulletin, and lots of pizza to celebrate the SPJ awards.

By the end of the day, there were whispers of "an east coast investment group" possibly entering the fray, but no other names we had not heard before.

We're told the results will be reported to the judge later in the week, and some public statement is likely to follow, although a story by Walter Wright in today's Advertiser says results will be reported today to parties in the litigation, and it is possible there will be leaks of details from those sources.

The twists and turns continue. Cec Heftel did submit a letter of interest, according to Peter Wagner's story in the Star-Bulletin yesterday, contrary to the tip I received over the weekend. Whether he still has a group of investors, or is proceeding on his own at this point, isn't clear. Everyone seems to have some tidbit of "inside" info, all of which adds up to just a shadow of knowledge.

It's also clear that this is only step one, and there's absolutely no guarantee that any group submitting the initial letter of interest will actually follow through with a formal proposal later.

I don't know if our situation is any better or worse than it was a month ago, but there's noticeably more pressure at ground zero. Everyone's still functioning, but the edges are sharper.

 

June 21, Wednesday

The newsroom was buzzing again yesterday, but little actual news about potential buyers surfaced during the day. There was gossip about goings-on across the hall (at the Advertiser), and a flurry of activity by our ESOP committee, including designation of a small group to sign the confidentiality agreement and access financial information to be provided by the broker. An Advertiser reporter's car was stolen from the back parking lot on Monday, making it one of the riskier places to park. That company-paid parking doesn't look like as much of a bargain in light of the risks. And a Guild meeting has been called for Sunday afternoon to discuss the contract negotiations and the Star-Bulletin status.

We're still expecting that those submitting expressions of interest in the paper will be identified following a status conference in federal court tomorrow.

Everyone seems to have their own Cec Heftel story. At a meeting yesterday of the Honolulu Community-Media Council, I heard everything from praise to warnings. We'll probably have the same range of reactions to any potential buyer. A depressing prospect.

 

June 22, Thursday

Former Congressman, broadcast executive, and unsuccessful candidate for governor, Cec Heftel, is scheduled to step out of the background to meet with representatives of ESOP Star-Bulletin today, according to reports circulating in the newsroom yesterday. This should be an interesting engagement for those involved, although it isn't clear what information they will be free to share with the rest of the staff.

A story in today's Advertiser say Heftel has indicated a willingness to work together with a Kauai couple who have also expressed interest in the S-B, perhaps an indication that Heftel hasn't garnered sufficient financial backing for a viable newspaper venture. That would be consistent with earlier indications that Heftel's "group" had come unglued in the last several weeks.

Today is also the scheduled court session in which the brokers will present a report on the expressions of interest submitted before Monday's deadline. Whether anything will be made public following that meeting remains to be seen.

The Wall Street Journal ran a story yesterday on the San Francisco Examiner deal. The story by Peter Waldman and Leslie Chang, which had a heavy-handed and more than a little slanted tone, focused on the Fang family and, in the process, missed the importance of the Justice Department's role in the situation, as well as San Francisco's role in the ongoing, nationwide struggle between the newspaper publishers and the Newspaper Guild and other unions.

Unraveling the DOJ's behind-the-scenes evolution is a story that remains to be written.

 

June 23, Friday

Nothing has changed except the wait, which has been extended again. Buyers who are still interested after pawing through whatever financial information is made available by Gannett will now have until August 4 to indicate their intentions, and formal proposals must be submitted within ten days after that, according to a story in today's Advertiser, which beat us to some of these details.

The newsroom was tense yesterday. ESOP organizers are moving into the realm of secret negotiations, so little information will be available from them in the weeks ahead. It remains to be seen whether remaining participants in the process will be any more forthcoming.

So far, we have no idea whether Cec Heftel is the only "name" player with an active interest in the paper, or whether a newspaper chain will at least put a foot in the door.

We haven't had much information about the Kauai couple, Peter and Jane McClaran, who say they are proceeding to make a bid with backing from Kauai developer Jeff Lindner.

The American Institute of Vedic Studies lists Jeff Lindner as owner of TriHealth, a Kauai business supplying "Ayurvedic herbs and formulas" (see www.oilbath.com). The March 1999 issue of Hinduism Today, also published on Kauai, describes Lindner as a director of Kerala Ayurvedic Pharmacy Ltd. (KAPL), said to be a major player in the Indian herbal medicine industry.

Lindner has several other companies, including a video rental business, several real estate partnerships, and is part of a Cincinnati-based family real estate company, United Dairy Farmers, Inc., state business registration records show. He is also listed as president of A Kula International, registered as a private school in Kilauea, Kauai.

Is this encouraging?

Contract negotiations with the Guild also continued yesterday. There are a few photos of the bargaining session at SaveStarBulletin.org, which says Gannett is seeking a ban on all freelancing by employees.

 

June 24, Saturday

I was out chasing the tail of a possible story along Oahu's windward and north shores yesterday and never made it back to my desk, so have no idea what the day's mood was.

There's been no reported news yet of any other groups that might have submitted letters of interest, just the vague statement that everyone's pleased by the number of responses. The hint is that there are others interested in seeing the paper's financials, but no one else has stepped out of the shadows.

The Mystery of the week was spawned by a description of Star-Bulletin assets in an Advertiser story on Monday:

"Star-Bulletin assets include its subscriber and advertiser lists, its Internet Web site, its masthead (the title on the cover), office furniture and leases.

Other assets include eight Macintosh computers, about 800 news racks, two Saturn sedans, two Plymouth vans, 10 cargo vans, and the publisher's 1994 Honda Accord.

Saturns? No one at the Star-Bulletin appears to know anything about the two Saturn sedans. They've apparently never been used by the S-B. So where are they? Probably stored with the news racks that were pulled off the streets.

Perhaps this is also the day for a bit of trivia. According to the counter used to track visitors to these pages, 46 percent have been Macintosh users, compared to 22 percent using Windows 98, and 20 percent Windows 95. If you throw in Windows NT, then the MS Empire takes a very slight lead overall (49% Windows v. 46% Mac OS).

 

June 25, Sunday

Just a few odds and ends for the day.

Staffers at the San Jose Mercury News got a new contract just before their strike deadline on Friday. There are some interesting observations on current conditions faced by the Guild and other newspaper unions.

How about a look at the folks brokering the sale of the Star-Bulletin? Here's a quick link to Dirks, Van Essen, and Phil Murray, who appears to be coordinating this project. It's always good to match a face to the name.

And here's another interesting take on the continuing consolidation in newspaper ownership. Although it is several years old, this article still captures the feel of the problem from a hometown perspective.

Cat people may continue on by clicking on Hiwa's picture. All others, well, you're done for the day.

Hiwa's still surviving, like the S-B.

 

June 26, Monday

The recent moves by Ogden are certainly interesting. They purchased the Maui News, and are now preparing a move to morning publication. Then they announced the purchase of free classified papers on Maui and Oahu. Could a Honolulu daily be in their future? Doesn't seem likely. Their plate seems pretty full right now as it is, and staffers on Maui haven't picked up any indications of interest in the S-B.

The Online Journalism Review had an interesting column a couple of months back: What makes a newspaper a newspaper? The online journalism world may be financially weak and facing collapse, but it appears journalistically very healthy.

And my friend Marnie tracked down those white Saturn sedans reported to be among the Star-Bulletin's assets. Sure enough, there hidden out there along with the missing news racks. Either that, or they're sporting Advertiser logos and are parked out in the side lot with the other company cars.

 

 

June 27, Tuesday

What a week. The doors of a secret "data room" open today in a downtown Honolulu law office so that qualified potential bidders can examine financial information about the Star-Bulletin. It isn't known what information is being provided, or whether it will include overall HNA data from which one could potentially extrapolate S-B numbers. Of course, it apparently requires interested parties to travel to Honolulu, and it isn't clear whether they can leave with copies for further study. If not, it's yet another artificial barrier to a successful sale.

Here's a tidbit to chew on. The Maui News' story on Ogden Newspapers' acquisition of weekly shoppers on Maui and in Honolulu included this comment attributed to Keith Colombik, publisher of the Maui Bulletin:

"Whatever town they (Ogden) go in, they buy the shopper," he said Thursday. "My personal opinion: That's a very smart move."

Ogden went into Maui, bought the Maui News, and months later the Maui Bulletin shopper. Now they're buying the Honolulu-based Pennysaver, and we're left to speculate on the possibility that its an adjunct to a Star-Bulletin bid.

Speaking of newspaper sales, here's one compilation of sales so far this year by Bolitho-Cribb & Associates, one of the oldest newspaper brokerages in the country. There's apparently quite a market for newspapers of all kinds.

And here's another vignette distributed via office email last week:

"My parents, Kailua residents, subscribe to the Bulletin but not the Tiser. So you can imagine their surprise when Tisers began appearing on their doorstep this week, starting Monday. They called HNA today, and were asked: "Don't you want the Tiser?"

And so it goes.

 

June 28, Wednesday 

Little movement. Several people stopped at my desk to ask whether the Star-Bulletin's ESOP group has been declared "qualified" to enter the next stage of the sale process. Short answer: I have no idea. Nothing's been heard around the newsroom indicating whether or not this has happened. I'm told that when the paper was up for sale in 1992, Gannett refused to deal with an employee group, and history could be repeating itself, although with the court involved the matter won't be left to Gannett to decide this time around.

June 29, Thursday

I think we were all shell shocked yesterday morning by news of Gannett's latest purchase, this time of the Arizona Republic, Indianapolis Star, and several other dailies now owned by Central Newspapers. The $2.6 billion (with a big B) is on top of the $1.1 billion committed earlier this month for 21 papers bought from Thomson. A billion here, a billion there, and pretty soon its some real money. Meanwhile, it's that much more that has to be wrung out of their local newspapers and other media "properites" to fund the shopping spree.

I don't know how to describe the empty feeling this news brought. The dark Empire sweeps over more of the known universe. Hordes of orcs filling the plains as far as one can see, blotting out the sun and hope of a happy ending at the same time. Voices can be heard murmuring, "resistance is futile." The appropriate response, and the appropriate emotional reaction, was very elusive, at least from where I sat.

Then I wake up this morning and read another Advertiser gaffe on the front page of their online edition: "Halekalani owner launches division to enhance brand". Of course, local folks would immediately notice the misspelling of the famous Halekulani Hotel's name, but it might easily slip through the Gannett mind warp. As usual, their reporter had it right, but it was lost in the subsequent processing.

It seems we're participant observers in the inevitable spread of corporate mediocrity in the world of journalism. 

 

June 30, Friday

There was a flurry of activity in the newsroom Thursday after a Gannett request for an inventory of Star-Bulletin computers filtered down through the hierarchy as a directive demanding it be completed by the end of business on Friday. There was some grumbling about the last minute rush, but the process appeared to be proceeding smoothly through the afternoon. Hopefully the inventory request reflects an effort to respond to a prospective bidder's question about assets.

In San Francisco, the Department of Justice has declined to enter the antitrust trial, instead submitting a letter to the judge indicating that the sale of the Examiner will not be anticompetitive, according to an Examiner story. With Justice out of the picture, a ruling by the judge can be expected soon.

I took a big dose of constructive criticism yesterday from an Advertiser staffer who sent this along via a friend. It obviously reflects a lot of thought, and also reflects on our collective condition staring across the hall from one newsroom to the other here in the building. Rather than get defensive, or attempt to summarize, I'll just include it unedited and readers can make their own assessments:

I have been exclaiming at the questionable analyses in your on-line diary for several weeks now, but your latest item hits a new low. Someone accidentally misspells "Halekulani" when re-transcribing a headline, and you turn it into evidence that all on the other side of the hall are outsiders bent on destroying the Hawaiian nature of our Islands? Gimme a break. There, I spelled something wrong. Now you can add me to your list of incompetents in the troops aligned with Gannett chips in their heads, marching in lockstep with one common goal: mutual destruction.

Let's face it, Ian: Journalists take jobs so that they can practice their craft. (In fact, many people still murmur that you "sold out" and now work for the "dark side" because you are employed by the corporate-owned daily paper - is that true?) Your sad-sack conjectures and conclusions about rank and file activities hurt feelings and inspire anger on the Advertiser side, but they actually hurt your own fellows more. Nearly every day, another mystical event provides cause-and-effect proof that all will turn out badly.

Ultimately, this also works against you. Many of the items you site have no connection to the conclusions you reach, and that's not a good thing, in a journalist. As one who wholeheartedly supports the Star-Bulletin employees' fight for survival, I urge you to reconsider the ramifications of your acts.

Finally, I'll tell you that the evidence doesn't support these accusations against the Advertiser's editorial staff. There's no cabal, no huddling over instructions to demoralize or slant pieces to undercut your efforts. Slant is always a concern, of course, but from where I sit, it seems to me that efforts to communicate with your fellow journalists in an open and honest manner might serve your cause more. Instead, you impugn our intentions without making an effort to go to the source.

And that's the week, and another month.

 

 

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