Trust in News (TiN), the media company owning well-known publications such as Visão and Exame, is undergoing a significant restructuring to address its insolvency. The plan, which was approved at a creditors' meeting on January 29, proposes an injection of up to €1.5 million by the company's sole shareholder, Luís Delgado. The financial contribution will be provided in phases based on the company's needs, aimed at strengthening its treasury.
Key Restructuring Measures
- Closure of the Porto Delegation: The company will shut down its office in Porto, reducing physical space by 70% (50% has already been cut).
- Suspension or Sale of Loss-Making Publications: Titles like TV Mais, Telenovelas, Caras Decoração, Visão Saúde, Visão Surf, and This Is Portugal are either suspended or will be licensed or sold.
- Staff Reductions: As publications are suspended, the company will reduce its workforce. Currently, TiN employs 104 people, with a goal to keep staff costs under €250,000 per month.
- Debt Payment Plans: The company proposes a phased payment of debts to the Tax Authority and Social Security in 150 installments, with common creditors also having a 12 to 15-year payment plan. There's also a possibility of exchanging advertising for part of the debt repayment.
Focus on Digital and Sustainability
To boost revenue and future profitability, TiN's insolvency plan emphasizes a shift to digital. This includes increasing digital subscriptions, enhancing the e-commerce platform, and exploring new content formats like podcasts and videos. Strategic partnerships with other publishing groups and the licensing of brands are also key components.
The company aims for a gradual improvement in profitability, with a return to positive results expected in the medium term, which would avoid liquidation and preserve both jobs and assets. TiN’s business model will be adjusted to better align with digital trends. Additionally, the creation of a Task Force comprising senior editorial, commercial, financial, and HR directors will oversee the implementation of cost-cutting measures and strategies to increase revenue.
The insolvency plan was approved by creditors in late January, and it will now be deliberated by the Creditors' Meeting for final approval.
Founded in 2017, Trust in News owns 16 media outlets, both in print and digital, and is now focused on stabilizing its financial situation while adjusting its business strategy for the future.
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