Eugene Weekly stops print, lays off staff, citing alleged embezzlement scam

Local newspaper Eugene Weekly has stopped printing, with managers announcing Thursday they had laid off the publications’s 10-member staff in the wake of an alleged embezzlement scheme.

The paper, which publishes weekly and is available for free around town, is halting its print publication indefinitely. First established in 1982, the paper has been a community staple, consistently publishing 30,000 copies every Thursday.

Managers announced the hardship early Thursday, publishing an article online titled "Where’s the Damn Paper?"

"We’re heartbroken to have to tell you that this independent voice is in danger of falling silent," read the statement on posted to the EW website.

What happened to the EW staff?

The entire EW staff was laid off just days before Christmas. EW managers stated that it was "at the hands of someone we once trusted," but there is no name or identity yet released.

EW editor Camilla Mortensen said the culprit was someone who dealt with EW finances, but would not disclose more information, citing an ongoing investigation.

"The reaction was serious anger (and) betrayal," said Bob Keefer, arts editor for EW of seven years and former longtime staff member at the Register-Guard. "Newspapers, particularly, run on trust. You have to trust each other. We do. And we did."

Keefer revealed the staff first found out that there were financial troubles for the EW on Dec. 14, but said they had no idea the extent. On Dec. 21, EW discovered there was no money to pay its employees, and layoffs quickly followed.

Keefer said he is in a different situation than many of the EW staff. He had been planning to retire in January to focus more on his photography. But many EW others rely on their jobs as their sole income.

"All of us are switching back and forth from sadness to hope... it's kind of a lot of shifting emotions," said Mortensen, who has been with EW since 2007 and has been an editor since 2016. "Knowing how much people love the paper is so heartening and we want to be able to tell them, 'Yes, we're going to be here,' and instead we are fighting to be here. We are trying so hard to be here."

Some EW staffers were still working despite no promise of when or if they might be compensated for their efforts. EW is still putting out content online in a limited capacity.

"They just keep showing up," said Mortensen, who herself was at the EW office Thursday. "It's a testament to what amazing people and journalists they are and a testament to how much the paper means."

What's next for the Weekly?

EW is in deep debt, unable to employ its staff and unable to continue to print its paper, according to managers. Although the extent of the alleged embezzlement is unknown, EW stated it is in the “thousands upon thousands” of dollars.

Mortensen said EW had been puzzled why finances weren't improving post-pandemic. When EW ownership looked into their tax filings, they discovered a mess, revealing a host of financial issues that came "crashing down like a house of cards."

EW has a team of private forensic accountants analyzing their books and accounts, and the Eugene Police Department is conducting an investigation.

Meanwhile, Keefer and Mortensen both said their biggest priority is to get a print product out to the community as soon as possible. Mortensen said she hopes to get an edition printed within the next couple of weeks.

First, EW needs funds to pay off the tens of thousands of dollars it owes to its printer, and raise money to pay its circulation workers and contract drivers. However, Mortensen said it only costs about $2,500 per week to print and circulate their paper. The big cost for the paper is salaries, which will be another challenge for the free publication.

The EW has relied entirely on print advertising. Until this week, it had lasted through the multiple economic crises, including the COVID-19 pandemic.

The Eugene community steps up

Keefer said there has been an outpouring of community support, a light in an otherwise dark tunnel.

Keefer posted to Facebook on Thursday morning, explaining the situation and asking for support. The post had garnered hundreds of likes, comments and shares just three hours after it was posted.

"I knew there would be some response, but really, it was pretty emotional to me to read this morning how many people really support the Weekly in this community," Keefer said. "That was the first time I've felt good about this whole episode."

Keefer added that EW has received more than $3,000 in donations already, but they need more to get the paper back on track.

Mortensen said funds and sharing the word are appreciated. She also asked the community to help the paper think outside the box for creative solutions to the predicament.

"The people who have been showing up and offering help and support have been amazing in just the last couple of hours," Mortensen said. "I'm overwhelmed."

To donate to the EW or find out more, visit support.eugeneweekly.com/. EW also has a GoFundMe set up, which can be found at www.gofundme.com/f/save-eugene-weekly.

Miranda Cyr reports on education for The Register-Guard. You can contact her at mcyr@registerguard.com or find her on Twitter @mirandabcyr.

This article originally appeared on Register-Guard: Eugene Weekly lays off staff, stops printing over alleged embezzlement