Sun-Times Media Group Moving All Operations to Chicago As CEO Gordon Paris Steps Down

By: E&P Staff Sun-Times Media Group continued its transition from its old identity as the scandal-plagued Hollinger International with the announcement Wednesday that it is moving its corporate headquarters from New York City to Chicago, and that the CEO who headed the investigation into the alleged massive looting by former Chairman Conrad Black and other top executives was stepping down.

CEO Gordon A. Paris said that after leaving the post at the end of the year, he would remain a company director, and continue to chair the special committee that accused Black, former Sun-Times Publisher David Radler and others of pillaging some $400 million in improper fees, payments and inside deals.

Paris will "also continue to oversee the resolution of certain issues for the company, including substantial tax-related matters," the company said.

"We are delighted that Gordon will continue in his role as Chairman of the Special Committee, focused on ensuring restitution for the company and vigorously protecting the interests of all of our shareholders," Chairman Raymond G.H. Seitz said in a prepared statement. "Further, we are grateful to him for assuming the role of CEO during an enormously difficult time and for his substantial accomplishments on behalf of shareholders. Over the past three years, Gordon has devoted remarkable effort to creating value for our shareholders, including generating approximately $1.7 billion in proceeds through the sale of the Telegraph Group and several other assets, as well as leading the reorganization of Sun-Times News Group (STNG), which has resulted in significant cost savings."

In his own statement, Paris, 53, said the move of the company's last three corporate functions from New York to Chicago made a natural time for his transition out of the CEO post.

A search committee of the board of directors, headed by Seitz, will consider internal and external candidates for a CEO based in Chicago. The committee has retained the executive search firm of Spencer Stuart.

The move to Chicago "reflects the actions taken over the past two years which have established Sun-Times News Group (STNG) as the sole operating division of the company, as well as the expected completion of the reorganization and consolidation of STNG in the fourth quarter of this year," the company said.

Sun-Times Media Group also announced other high-level management changes.

James R. Van Horn, 50, the company's New York-based vice president, general counsel and secretary, is leaving at the end of the year, and will be succeeded by James D. McDonough, who has served as assistant general counsel, based in Chicago since January 2005.

New York-based Treasurer Robert T. Smith, 63, is leaving at the end of October, the company said. He will be replaced by Dennis M. Byrd, 51, who joined the company this July.

The Company's Chicago headquarters is located at 350 North Orleans Street, the same building housing the flagship Chicago Sun-Times. Sun-Times Media Group publishes about a hundred daily and community papers in the greater Chicago area.