The Los Angeles Times has repeatedly fallen months behind on payments to contractors and vendors, including a high-profile journalist, as owner Patrick Soon-Shiong pursues plans to take the newspaper public, according to a report by Status newsletter, cited by the New York Post.
Investigative journalist Catherine Herridge, a marquee hire, reportedly struggled for months to collect payments owed under her contract with the paper. She was eventually paid after what sources described as a prolonged effort to secure the funds.
A spokesperson for the Los Angeles Times confirmed that the company is current on "the majority" of its payment obligations and that payments are "overwhelmingly being made in accordance with contractual terms for all active accounts." The spokesperson stated that the assertions of widespread payment delays are "not accurate."
Despite the newspaper's statement, the report indicated that some contractors and vendors waited months to receive payments, only obtaining them after escalating the issue to senior executives or threatening further action.
Herridge, a former CBS News and Fox News investigative reporter, joined the Times in November of the previous year under what was described as a lucrative deal to host a weekly investigative series. However, the relationship reportedly soured behind the scenes due to the payment delays.
This situation arises as Herridge is also involved in a legal battle concerning her refusal to identify a confidential source, which has led to daily contempt fines. The Supreme Court recently rejected her bid to block these fines.
The reported payment issues have reportedly caused frustration among some executives within the Times. Decatur Holcombe, the paper's senior vice president of finance, reportedly resigned, with sources suggesting it was due to concerns about the company's direction. However, a Times spokesperson, relaying Holcombe's denial, stated that any such assertion is "completely false."
Soon-Shiong, a biotech billionaire who acquired the Los Angeles Times in 2018, is described in the report as intensely cost-conscious. In one instance cited, he reportedly offered a former CBS News president, David Rhodes, a coach-class airline ticket and lodging in his guest house instead of a hotel during recruitment for a senior role. Rhodes told Status that this experience made him question Soon-Shiong's commitment to investing in the newspaper.
The reported payment delays come as Soon-Shiong is reportedly seeking to raise as much as $500 million through an initial public offering for the 144-year-old newspaper.