Inquirer Owner Reviewing Real Estate Holdings

PHILADELPHIA (AP) - January 9, 2007 -- The owner of Philadelphia's two largest newspapers said Tuesday it has been conducting a review of its real estate holdings - including the historic building that serves as the publications' headquarters - in a bid to be more efficient.

Brian Tierney, chief executive of Philadelphia Media Holdings, said the company hired a real estate firm months ago to evaluate its assets, including the 82-year-old landmark that houses The Philadelphia Inquirer and Philadelphia Daily News.

The review encompasses real estate holdings the company owns or leases. While no property is off limits, Tierney said there's a "very small chance" that the iconic building would be sold.

The company, which has cut more than 100 editorial and advertising jobs since Jan. 1, has no plans to move headquarters out of downtown Philadelphia, said Jay Devine, a spokesman for Philadelphia Media Holdings.

The 18-story building topped by a four-story clock tower and bronze dome was completed in 1925.

The idea to sell the building at Broad and Callowhill streets came up last July in a memo to employees from former publisher Joe Natoli.

Henry Holcomb, president of The Newspaper Guild of Greater Philadelphia, said the union informally mentioned the idea to sell the building during contract talks last year as a way to save jobs. The Guild was told by management's representatives that funds from a possible sale had already been earmarked for other uses and would not minimize job cuts, Holcomb said.

The company, which bought the papers from McClatchy Co. in June for $515 million in cash plus the assumption of pension liabilities, has been grappling with declining circulation and advertising revenues and said layoffs were necessary to cut costs.

On Monday, the company told 34 people in its advertising sales department - nearly 10 percent of the staff - that they would be laid off.

Last week, the company cut 71 jobs from the Inquirer newsroom, or about 17 percent of the editorial workers. Three people were offered positions elsewhere in the company.

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