TRAVERSE CITY -- Ten staff members were let go at TV 7&4 as its parent company reported an "extremely challenging" business climate due to the economic downturn.
Nine full-time staffers, including some on-air positions, and one part-time job were eliminated by the local NBC affiliate this week, station president and CEO Jill Saarela said Friday. The station is owned by Barrington Broadcasting Group LLC based in Hoffman Estates, Ill.
"7&4 has been reporting on layoffs in every sector of the economy and we are not immune," Saarela said in a statement. "Just like in other businesses, these are good people with families and homes in northern Michigan. They are our friends and valued co-workers and we were devastated to have made these painful decisions."
Saarela said TV 7&4 is among several stations owned by Barrington that made staff cuts this week, although she didn't know how many positions were eliminated throughout the company. It owns 21 television stations in 15 markets around the U.S.
Calls to Barrington's headquarters were not returned Friday.
Barrington this week reported that it expected to breach a leveraged credit convenant resulting in the anticipated contribution of approximately $16 million in cash from its parent company, the private investment firm Pilot Group LP. In a statement, Barrington said conditions in the industry "have been extremely challenging" as the weakening economy is impacting the company's national advertising revenue, with companies canceling scheduled advertisements at a higher rate than in the past.
The company also reported decreased spending on advertising by automotive clients because of the severe downturn in the auto industry. In its third-quarter earnings report for 2008, the company said its national revenues decreased $2.4 million, or 8.6 percent, for the first nine months of 2008.
Barrington purchased TV 7&4 in early 2006 as part of a $262 million deal with Raycom Media Inc. for a dozen television stations in nine media markets around the country.
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