CHARLESTON, W.Va. -- Champion Industries Inc. has reached a deal to sell the Huntington Herald-Dispatch newspaper for $10 million -- a fraction of what the company originally paid for it six years ago.
Champion, run by chairman and chief executive officer Marshall Reynolds, plans to sell the company to Reynolds' son, Delegate Doug Reynolds, D-Cabell, next month, according to a filing made June 21 with the U.S. Securities and Exchange Commission.
According to the filing, Champion entered into a letter of intent on June 18 to sell the Herald-Dispatch to the younger man.
Doug Reynolds will pay $10 million in cash and assume all current debts to vendors and suppliers as part of the transaction, which will close on or before July 15. The filing said Doug Reynolds has already place $2 million in escrow to cover the sale.
While the filing said Doug Reynolds may form an investment group to fund the acquisition, he "was fully prepared to close the transaction without investor participation."
The filing said Champion conducted a nationwide marketing process for the sale of the Herald-Dispatch, which resulted in one other current offer. After consulting with its independent financial advisers, the Champion board decided Doug Reynolds' offer was the best in terms of price and conditions.
Doug Reynolds could not immediately be reached for comment regarding the sale.
The $10 million purchase price is low compared to the $77 million Champion originally paid to buy the newspaper from GateHouse Media in 2007.
Champion, the parent company of Champion Printing and Capitol Business Interiors, financed much of that purchase with debt, which has strained the company's balance sheet in recent years.