By: (AP) The chief executive of Freedom Communications Inc., publisher of
The Orange County Register, was expected to be ousted Thursday as part of a plan to restructure the family-owned media company, a published report said.
CEO Samuel Wolgemuth has been criticized by some of the 50-plus descendants of Freedom founder R.C. Hoiles over poor financial performance by the company, which owns 28 daily newspapers, 37 weeklies, and eight television stations.
Family members agreed at a meeting two weeks ago to seek Wolgemuth's dismissal, Kirk Hardie, a fourth generation member of the Hoiles family, told the
Register in an article published Wednesday. The issue is on the agenda for a telephone meeting Thursday of Freedom's board, which consists of six family members, six outside directors, and Wolgemuth.
Wolgemuth did not respond to phone calls from the AP on Wednesday.
The move comes as the family studies ways to restructure Freedom and buy out the interests of third-generation Hoiles descendants.
Timothy Hoiles, grandson of R.C. Hoiles and a proponent of selling or otherwise restructuring the company, has been pushing for Wolgemuth's ouster.
"We don't have good newspaper management at the corporate level," Hoiles told The Associated Press in a recent interview. He refused to comment Wednesday, saying his attorney told him not to discuss items on Thursday's board agenda.
Last week, the board approved the principle that ownership of Freedom should be transferred to the fourth generation of the Hoiles family.
The younger members were asked to devise a plan to raise capital to buy out older family members. Options include selling stock to the public, raising funds from private equity investors, or selling parts of the company.
Family members haven't publicly identified potential new CEOs, but Wolgemuth will be asked to make suggestions on his successor, the
Register reported.
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