Former PC cabinet minister Kevin Klein buying Winnipeg Sun from Postmedia

A former Progressive Conservative cabinet minister and MLA is buying a Winnipeg newspaper.

Kevin Klein has agreed to purchase the Winnipeg Sun, where he once was thepublisher, Postmedia confirmed on Monday.

The Klein Group, of which Klein is president and CEO, is also buyingthe Graphic Leader in Portage la Prairie, Man., and the Kenora Miner andNews in western Ontario.

Postmedia's commercial print division in Winnipeg, including all associated digital properties, contracts and other related parts of the businesses, is also part of the sale to the investment group.

Postmedia said all employees are expected to keep their jobs.

"In an age where information is abundant and easily accessible, the role of local journalism is more crucial today than ever before," Klein said in a news release.

"We are honoured to take ownership of these local newspapers and are dedicated to preserving their legacy of providing trusted, community-focused news."

Politician became Sun columnist

Klein has been writing a regular column for the Winnipeg Sun since he was defeated in last fall's provincial election.

He served as publisher of the newspaper from 2007 to 2013, according to his LinkedIn account.

Klein served as a Winnipeg city councillor for one term, representing Charleswood-Tuxedo-Westwoodfrom 2018 to 2022.He ran for mayor in 2022, but came in third place.

Klein entered provincial politics two months later, winning the Kirkfield Park byelectionfor the Progressive Conservatives. He became the environment minister in early 2023.

Klein told CBC News last month that he would likely runfor leadership of the PC Party. The next leader is slated to be chosen inApril 2025.

Staff at the publications were informed of the sale on Monday morning.

There are 37 unionized employees at the Winnipeg Sun alone,UniforLocal 191representative JohnRidd said. Only eight arejournalists who mostly work from home.

The Postmedia release said Sun employees retain their jobs, along with the collective bargaining agreement they had signed. The non-unionized employees will be re-offered their jobs with the Klein Group.

Unionized Sun employees have been without a contract since their last one expired in 2022, said Ridd, who expressed cautious optimism about the paper's new ownership.

"I'm hoping to see that the doors stay open, that our members at least have some security going forward with their jobs and that the newspaper stays alive," he said.

The Winnipeg Sun was founded in 1980 as an independent newspaper. The Quebecor media group purchased the paper in 1983 and incorporated it into the Sun newspaper chain in 1999.

Postmedia purchased the Sun papers in 2015.

In the memo to employees, Postmedia called the sale to the Klein Group a "new and unique model," as the company will continue to provide support to the new owners, as well as national news stories and opinion pieces to supplement local coverage.

"This is a model that is unique to a distinct market where we have no other geographic presence the papers were no longer sustainable for us, and we were able to attract a local group with a commitment to keeping operations going."

According to afiling with Manitoba's companies office,Klein is not listed as owning10 per cent of the sharesor more ofthe Klein Group.

Klein said in an interview on Monday the corporate structure of the companyis changingand the current shareholdersof the Klein Group will be disclosed after the sale closes on June 1.

The newspaper industry has been decimated by crateringadvertising revenues as more consumers get their news coverage online. Postmedia has closed or sold dozens of newspapers over the years, including a number of weekly community papers in Manitoba in 2020.

Postmedia reported a net loss of $20.1 million in the second quarter of 2024, while revenue dropped 13 per cent.

'Trusted and valuable journalism'

Monday's memo to Manitoba staff described the sale to the Klein Group asgood for the communities and employees, as the new owners areexpected to keep running the publications in their current form.

It also said while there are benefits to thistransaction, in which ownership is transferred but support is still being provided, it isn't indicative of a wider strategy for the company.

"We are pleased to have reached an agreement with a local group that will continue Postmedia's long tradition of providing trusted and valuable journalism in these important markets," Andrew MacLeod, president and CEO of Postmedia, said in a news release.

Financial details of the sale weren't disclosed.

Klein said more details about the transaction will be disclosed after June 1. He said he is committed to ensuring the paper he once led as publisher remains in the Winnipeg marketwith local ownership.

"It is important to have another voice in Winnipeg. It is important that we provide the news that's necessary, that we play that vital role, that we live up to our obligations and that uphold the principles of journalistic integrity," Klein said.

Cecil Rosner, a University of Winnipeg media professor who has authored two books about Canadian journalism, said not many people are interested in buying newspapers.

"The fact that there's a group, a local group willing to run a newspaper in one sense is an interesting development, perhaps a positive development,as opposed to a hedge fund in the U.S. running a newspaper," said Rosner, a former managing director of CBC Manitoba's newsroom.

"But the fact that it's the ownership group is being led by a partisan politician raises some concerns for sure."

Premier, mayor weigh in

Manitoba Premier Wab Kinew said he too is pleased the Sun will be locally owned, but expressed skepticisma Klein-led newspaper will be fair.

"I'd always try to be an optimist. However, given Mr. Klein's involvement in a very negative, ugly campaign last year, I've got to say I'm skeptical," Kinew said, referring to PC election messaging in 2023.

Klein said he does not criticize the premier for makingsuch a comment.

"I understand thathe might be a little bit concerned, but I would hope that he would be much more excited that there's a future for a second newspaper," he said.

Winnipeg Mayor Scott Gillingham, a former political rival of Klein's, issued congratulations on X, formerly known as Twitter.

"As the news industry evolves, maintaining coverage of local stories remains crucial for our communities and our democracy, Gillinghamposted.

Klein said he is not a politician any longer, and said it would be unfair to ask him whether he has any interest in politics in the future.

"I am dedicated 100 per centto making this successful," he said.

Former Manitoba politician to buy Winnipeg Sun

4 months ago

Duration 2:03

A group led by Kevin Klein, a former Winnipeg city councillor and Progressive Conservative MLA and cabinet minister, plans to assume ownership of the Winnipeg Sun newspaper in June.