Eugene Weekly compelled to put off total employees, cease printing after alleged embezzlement

The Eugene Weekly mentioned Thursday that it has laid off its total employees and stopped printing its publication indefinitely, citing an alleged embezzlement rip-off.

Managers posted a narrative on the paper’s web site Thursday morning that mentioned it was compelled to put off its 10-person employees three days earlier than Christmas and halt its print version for the primary time in over 20 years. The paper, which was out there totally free, had been printed each Thursday with a print run lately of roughly 30,000 copies.

The paper’s managers mentioned they “found that EW had been the sufferer of embezzlement by the hands of somebody we as soon as trusted” simply earlier than Christmas.

Camilla Mortensen, editor of the Eugene Weekly, declined to call the alleged offender, saying that the case was below energetic investigation. She mentioned that individual has not but been arrested or charged.

Mortensen mentioned employees began trying into the enterprise’ books final month after it started receiving past-due payments from distributors. After discovering irregularities, she mentioned, employees reported the difficulty to police as suspected theft.

Melinda McLaughlin, a spokesperson for the Eugene Police Division, mentioned the newspaper filed a theft report on Dec. 19. She declined to launch extra particulars, saying the case is below energetic investigation.

Even after detecting the monetary issues, Mortensen mentioned employees didn’t initially notice the extent of the enterprise’ peril. She mentioned by Dec. 21, although, she mentioned it “didn’t have cash to make payroll.” That’s when the paper laid off its employees.

Mortenson mentioned she suspects no less than $100,000 was diverted from the enterprise. She mentioned cash had additionally been diverted from workers’ retirement financial savings, together with her personal.

“I’m simply devastated for our small employees. … It’s simply past something we’d ever imagined,” Mortensen mentioned. “It’s possibly the character of being an alt weekly and being scrappy that the primary response is to be devastated. And the second response is, I’m gonna do that, I’m gonna struggle.”

Bob Keefer, who has served as the humanities editor on the Eugene Weekly for seven years, mentioned “it was a reasonably darkish day” when information of the layoffs got here. He mentioned he was planning to retire in January to concentrate on his images and has a secure revenue from that work.

“It’s not financially devastating to me, though it actually has pissed me off,” Keefer mentioned. He mentioned there are others for whom the sudden layoff might be an even bigger monetary hit, together with a younger couple who each work at paper.

“That is essentially the most wonderful factor I’ve seen, and essentially the most tragic in plenty of methods,” Keefer mentioned. “Like most small companies and like most information retailers, (the Eugene Weekly) depends on an excessive amount of belief. When that belief is betrayed, it’s simply horrible.”

Mortensen mentioned a number of workers have continued working with out pay, together with herself. Keefer, too, is continuous to assist out.

Keefer mentioned the group’s response to the information has been “staggeringly good.” He mentioned the Eugene Weekly obtained $3,000 simply throughout the first hour of the newsroom’s announcement of its monetary troubles Thursday morning.

“Clearly that’s a drop within the bucket in comparison with what we most likely want. But when these drops maintain coming, there’s a future,” he mentioned. “The outpouring of assist has been phenomenal.”

The paper’s managers hope to make use of the contributions to pay payments and restore the print version. Print promoting, Mortenson mentioned, is the weekly’s main income supply.

Brent Walth, a journalism professor on the College of Oregon and co-founder of the Catalyst Journalism Undertaking, mentioned the Eugene Weekly’s information is “heartbreaking for the group.”

“The Eugene Weekly has been a robust various voice in the neighborhood for a very long time,” Walth mentioned. “The Eugene Weekly has stepped as much as fill plenty of the gaps and has been an incredible supply for not simply arts and leisure information, however they’ve additionally finished actually good investigative and watchdog and accountability reporting.”

Walth mentioned the Eugene Weekly was the primary newspaper to associate along with his Catalyst Journalism Undertaking to get work by College of Oregon college students printed, and the paper has helped many younger journalists launch their careers.

–Kristine de Leon; [email protected]