CHARLESTON, W.Va. -- Champion Industries plans to sell the Huntington Herald-Dispatch newspaper for $10 million, according to a filing with the U.S. Securities and Exchange Commission. The company bought the Herald-Dispatch for $77 million in 2007.
Marshall Reynolds, chairman and CEO of Champion, plans to sell the company to his son, Doug Reynolds, according to the June 21 filing with the SEC.
Doug Reynolds, a Democratic member of the House of Delegates from Cabell County, has already put down $2 million in escrow. He will pay $10 million cash for the newspaper and assume all debts, a letter of intent filed with the SEC on June 18 states.
The transaction will close on or before July 15, according to the filing.
Marshall Reynolds said Tuesday the transaction is simply a transfer of assets.
"It wouldn't matter if it was $10 million or $100 million," he said. "In order to have an arms-length transaction, you have to have some third party put a number on it.
"It seems like the thing to do and it will probably let it end up as an S [corporation]," Marshall Reynolds said, noting that would result in paying fewer taxes.
The filing notes that after a nationwide bid process, another offer was made to purchase the newspaper, but Doug Reynolds' offer was better. Marshall Reynolds wouldn't name the other bidder Tuesday.
Marshall Reynolds said it's hard to put a price tag on the paper, which has a daily circulation of about 23,000 on weekdays and 28,000 on Sundays.