Eugene Weekly lays off entire staff after alleged embezzlement | News
Staff at one of Eugene’s most popular weekly newspapers is facing a significant setback after it recently learned money was being stolen out of their business for years, forcing them to lay off their entire staff and stop printing copies of their paper.
EUGENE, Ore. – Staff at popular weekly publication ‘Eugene Weekly’ said they have been dealt a “massive financial blow” after they recently discovered someone had allegedly been taking money from them for years, forcing them to make drastic cuts to their operations.
Editor-in-Chief Camilla Mortensen said just before Christmas, staff discovered a “trusted person, someone we saw every day” appeared to have been pocketing money from the paper.
“To the degree that we are massively in debt,” she said. “We have creditors all over town that we didn’t know about and we’re fighting to keep the paper going.”
Homepage of Eugene Weekly’s website.
A spokesperson with the Eugene Police Department confirmed they took a theft report, but could not comment further as the case is under investigation.
Mortensen said staff were always aware they were facing financial struggles like many newspapers do, but were shocked to know embezzlement may have contributed to their challenges.
“I would say more than $100,000, at least,” she said when characterizing the paper’s overall debt. “And that’s not including small business loans and things we had taken when we thought we were operating normally.”
Eugene Weekly’s owners have hired forensic accountants to figure out the damage done from the alleged theft, Mortensen said. They will look at money not accounted for and bills that have gone unpaid without anyone knowing.
“Just finding out if we haven’t paid a freelancer or someone who’s done work is devastating,” she said.
Recent issues of Eugene Weekly on display in their office.
As part of a business that operates on trust, Mortensen said the situation has shaken theirs.
“People trust us to tell the story,” she said. “We trust people to take out ads and support us. And we trust each other in the office. And we were just blindsided. Of all the things that we thought could be financially hurting the paper, embezzlement was not on the list.”
Because of the situation, the paper’s entire staff of ten people were laid off before the holiday, and Eugene Weekly did not come out with a print edition on December 28 as they typically do every Thursday.
“We had to lay off everybody,” Mortensen said. “There was no money. So, we got one last paper out with a warning that we might not be printing.”
Desks inside the Eugene Weekly newsroom.
While this marks the first time in over 20 years they will not print a paper, Mortensen said Eugene Weekly’s work will not stop.
Staff are volunteering their services to get their content out into the community – even if not in a printed paper.
“We released a statement [Wednesday] night online and just did a kind of a smaller, digital version of some stories we had already been working on,” she said.
Recently laid off Eugene Weekly staff member works at his station, volunteering his services for the paper.
For now, Eugene Weekly will continue publishing online. Mortensen said their short-term goal is to get financially stable enough to get the paper back in print.
Being available in print is a big focus as it makes their work more accessible, she said. Their printer, who they owe money to, will process their work only if they are able to pay up front.
In the long term, staff will work to figure out a sustainable path for the paper to continue long into the future.
“You do it because you love it and you love the paper and the community,” she said. “Even though we were all told we were laid off — we are still coming in and trying to put out a paper.”
As people came to the Eugene Weekly offices on Thursday, expecting to pick a new copy of the paper, many were shocked to learn what happened. One woman, having heard about what happened online, came by with some cash.
“Well I went to my bank and I got some cash, and I brought it to the Eugene Weekly,” said Nadja Sanders.
She said what happened to Eugene Weekly is a “tragedy.” She donated some money to the paper because she said it is a local institution that provides thoughtful coverage of local and large-scale issues.
“I’m sure everybody has their own opinion about what the Eugene Weekly means,” Sanders said. “I just think it’s a really important part of our community”
Exterior of the Eugene Weekly office on Lincoln Street downtown.
Mortensen said financial support from the community would be a big help, along with some creative ideas to get support to the paper. The level of sympathy from the community is also impactful.
“To find out that you’re losing your — for many of us — dream job, three days before Christmas, is just devastating,” she said. “And to realize how much the work that you do matters to people, is huge.”
Those interested in helping the Eugene Weekly can make a donation at the paper’s website or at GoFundMe.
