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Tribune Publishing Co. announced that Timothy Knight, its president and CEO, is leaving the company after only a year on the job. Terry Jimenez, the company’s chief financial officer, has been appointed as the new chief executive in the management shake-up. Tribune also said that Mike Lavey, the current controller and chief accounting officer, has been named interim CFO.
The company, which owns newspapers such as the New York Daily News, Chicago Tribune and The Baltimore Sun, said that Knight has stepped down from the board and will exit the company at the end of February.
Knight’s departure comes after Alden Global Capital, a New York City-based hedge fund, became the largest shareholder in the company, increasing its ownership to 32% in November. Alden subsequently added two directors to the company’s board and agreed to cap its ownership stake at 33% until June.
Alden, which owns newspapers across the country through its control of newspaper publisher MNG Enterprises, is known for aggressive cost-cutting measures at its news operations. Tribune has already been downsizing its staff and last month offered buyouts to employees throughout the company.
The company has also appointed Philip Franklin, chairman of the board’s audit committee, as its nonexecutive chairman. He replaces David Dreier, who will stay on the board.
“These changes are a natural transition as Tribune Publishing works to reduce its corporate and back-office costs and streamline its real-estate footprint,” said Dreier, a former U.S. congressman from California.