Cumulus has over 440 radio stations and thousands of employees all across the country. They will wake up this morning to read that their company has filed for Chapter 11 protection. Many radio executives have said the sooner both Cumulus and iHeart restructure their massive debt load, the better it will be for the industry. So what should employees expect moving forward? Yes, you will still receive your paychecks.
Those running Cumulus want employees to know that the business will continue to run as it has been and they say there’s enough money to keep the company operating, although they do not say how long. The company has set up both a hotline and website for employees who may have questions about the restructuring. The website lists frequently asked questions that, for the most part, say everything will be business as usual. Here’s how Cumulus’ addresses employees: “First and most importantly, we are (and will continue to be) open for business as usual! As we have been saying over the last several weeks, our operations are strong and programming and sales will continue as normal across our family of stations and Westwood One affiliates.”
About Westwood One, the restructuring website says: “Westwood One’s operations, programming and sales, including syndication of content and services to affiliates, will continue as normal. We will work with affiliates as we always do. Our affiliates are a critical part of business, and we will continue providing you with content and services with no interruption of service. We value our partnerships with our affiliates and look forward to expanding our relationships in the future as we introduce new programming and exciting new innovations.”
As the company goes into court to work out this plan it has also posted to its restructuring website that it may not issue earnings press releases or hold quarterly conference calls during the court-supervised process.
