Black Web 2.0 - Johnson Publishing Company: Under Seige

Johnson Publishing Company: Under Seige Posted: 25 Jun 2009 06:00 AM PDT According to Chicago Business, Johnson Publishing Company is experiencing the worst financial downturn in its 67-year history. In the article, Legacy on the Line, the online magazine states that in the past three months Johnson has been hit with contractors' liens claiming the company failed to pay for work worth nearly $500,000. In May, Johnson mortgaged its South Michigan Avenue headquarters building and parking garage to its printer, R. R. Donnelley & Sons Co. Loan documents say the deal secured previous debts to Donnelley totaling $12.7 million — another sign of financial distress for the nation's largest black-owned publishing company. Chicago Business cites other Johnson Publishing woes: revenue fell 28% to $328 million their employee headcount tumbled to 340 from 503 In an e-mail message to Chicago Business, publisher Linda  Johnson Rice "called the mortgage and a $2.6-million trade credit from Donnelley a 'prudent' move. It acknowledges the liens and says 'we fully intend' to pay the contractors." 'It's no secret that the entire publishing industry, including Johnson Publishing Co., is feeling the pressure of the current economy,' the statement says. 'And, like any conservatively managed company, we're taking whatever precautions we believe are prudent to give us the necessary resources to weather the current economy.'