Postmedia Network Canada Corp (PNCa.TO), the country's biggest newspaper publisher, said on Thursday it had initiated a review to consider asset sales and debt and equity restructuring as its losses widened.
The publisher said it lost $225.1 million in the three months to the end of February, which included a $187 million impairment charge, in what Chief Executive Officer Paul Godfrey called "an unrelentingly challenging environment."
That compared to a loss of $58.2 million a year earlier.
Postmedia said it had formed a special committee to consider non-core asset sales, cost reductions, initiatives to boost sales, and refinancing or repayment of debt and the issuance of new debt or equity.
The company also said that Ted Lodge, a partner at its largest shareholder, hedge fund manager GoldenTree Asset Management LP, had resigned from its board to "focus on GoldenTree's investment in Postmedia."
GoldenTree is looking to sell its stake in the company, the Wall Street Journal reported in March, citing unnamed sources.
Postmedia's stable of newspapers includes the National Post, Montreal Gazette, Calgary Herald, Ottawa Citizen and Sun tabloid in Toronto, Calgary, Edmonton, Ottawa and Winnipeg.
The company said its revenue, excluding the contribution of the Sun newspaper chain acquired in April last year, fell 13.1 percent to $126.4 million. Including the Sun titles, revenue was $209.1 million.
Postmedia blamed the decline on a further deterioration in print advertising revenue, while circulation and digital revenue also fell.
The company said in January it planned to cut $80 million in operating costs by the end of fiscal 2017, up from a $50 million target in July last year.