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One of the largest German daily newspapers declares bankruptcy

One of the largest German daily newspapers, Frankfurter Rundschau, declared bankruptcy on Tuesday, confirming rumors of a possible shutdown of the publication, German media reported.

Although the publishers, the DuMont Group and DDVG, had repeatedly denied claims about the newspaper’s problems in recent months, a court in Frankfurt received a request to initiate bankruptcy proceedings on Tuesday morning. The current management will remain in office until further notice, but decisions regarding operations will be made by a lawyer appointed as the temporary bankruptcy administrator.

However, employees of the newspaper announced on Tuesday afternoon that FR will continue to be published, but did not clarify how this would be made possible.

In recent years, the publishers have implemented austerity measures in the newspaper several times, including salary reductions and the merger of FR with the Berliner Zeitung, but these measures have proven unsuccessful. The Verdi union, which includes employees of FR, did not hide its surprise at the bankruptcy decision.
– We had hoped that there were other solutions – said union representative Manfred Moos. According to union reports, Frankfurter Rundschau employs about 500 people, of which one-fifth are journalists.
The German Journalists’ Association (DJV) called on the publisher not to lay off employees in the editorial office.
– Journalists at FR need a professional perspective – said DJV president Michael Konken. “The collapse of a reputable newspaper is particularly bitter for employees who have fought for the survival of their newspaper for years by sacrificing part of their salaries,” concluded Konken.

The weekly Der Spiegel estimates that the bankruptcy of FR could be just the beginning of a “newspaper massacre” in Germany in the coming months. According to Spiegel’s reports, the survival of the Financial Times Deutschland is also at risk, and a decision on its fate is expected by November 21.

The left-liberal newspaper Frankfurter Rundschau is owned by the DuMont Group and the publishing company DDVG, which is owned by the German Social Democratic Party (SPD). Both publishers announced on Tuesday that recovery measures have proven unsuccessful, especially after a significant drop in advertising and print revenue in the first half of the year.
– This has also eliminated the prospect of further survival for the company – the statement said.

In the afternoon, the employee council of the newspaper issued a statement titled ‘This is not the end of FR’. Employees promise in the statement that the newspaper will continue to be published. “We are firmly convinced that Frankfurter Rundschau has a future with your support and our work,” the employees told readers, without specifying the basis for their optimism.

Frankfurter Rundschau received permission to publish in August 1945 as the second newspaper in post-war Germany. According to the Frankfurter Allgemeine Zeitung, FR has recorded annual losses of 20 million euros in recent years.
Frankfurter Rundschau is one of the largest daily newspapers in Germany. In terms of circulation, FR ranks fifth with 118,000 copies sold, and if we exclude the Bild newspaper, which is classified as a tabloid and has a circulation of 2.7 million, FR is in fourth place behind Sueddeutsche Zeitung (413,000), Frankfurter Allgemeine Zeitung (354,000), and Die Welt