Postmedia enters agreement to buy Saltwire

Postmedia has entered an agreement to purchase SaltWire, Atlantic Canada's largest newspaper chain, according to a news release issued Friday.

SaltWire has been under creditor protection since March. It publishes more than 20 papers in Atlantic Canada, including The Chronicle Herald in Halifax, The Guardian in Charlottetown, and The Telegram in St. John's, along with associated websites.

In the release, the Canadian news media company said the potential acquisition aligns with Postmedia's commitment to preserving local journalism and supporting communities.

"If the transaction can be completed, Postmedia intends to provide the necessary back office resources and operational infrastructure to ensure there continues to be reliable and high-quality local news provided to the affected communities," said Postmedia president and CEO Andrew MacLeod.

It was not clear from the news release whether Postmedia intends to preserve all of SaltWire's titles.

"Readers would continue to enjoy stories reported by local journalists, supported by the voices and opinions that Canadians across the country rely on for information, diverse perspectives, and unique insights into national and international developments," the release said.

The Charlottetown Guardian, P.E.I.'s largest daily newspaper, is one of two Island publications owned by SaltWire Network. (Steve Bruce/CBC)

Postmedia did describe the current operations of SaltWire as unsustainable, though, and said closing the deal would require co-operation from the company's workforce.

"In order to save critical journalism jobs, we will need the support of the relevant unions to help construct a viable business model," MacLeod said.

Willy Palov is the president of the Halifax Typographical Union, CWA 30130.

"We're pleased to see a buyer step forward," he told CBC News in an email on Friday.

"The news is still fresh, and we don't have all the details yet, so the members and I will have to review the proposed terms before we can say a whole lot more."

The largest newspaper published by SaltWire Network Inc. is the Chronicle Herald, based in Halifax. (CBC)

Journalist Stephen Maher worked for both companies over the course of his career, having served as the Ottawa bureau chief for the Herald from 2004-2011, and then as a national columnist for Postmedia.

He says he saw first-hand the importance of having an independent paper in the Atlantic region.

"During the Atlantic Accord disputes, when Nova Scotia and Newfoundland and Labrador's leaders were pushing for a greater share of offshore petroleum revenue, in opposition to Paul Martin and then Stephen Harper, the Herald played an important role in covering the issue from an Atlantic angle, which put intense political pressure on Ottawa to make a reasonable deal," he said in an emailed statement to CBC News.

The St. John's Telegram and other TC Transcontinental properties were acquired by Halifax-based SaltWire Network in 2017. (Cecil Haire/CBC)

Maher said he hopes for the best outcome for his former colleagues at both companies, and for readers in the region.

Given ongoing financial trouble at SaltWire, Postmedia said it would like to close the deal as early as Aug. 5, and Aug. 26 at the latest.