Jay Penske Tells WWD Employees About the Money They’ve Been Losing

FFMLogoNew York Times reporter Laura M. Holson has the details of meetings chaired by Jay Penske with Women’s Wear Daily staff the day after the announcement of his acquisition of Fairchild Fashion Media.

The meetings took place on Third Avenue, in a seventh floor conference room. But the number that jumps out from Holson’s article is much larger: $50 million, or the amount Penske told gathered employees that Fairchild has lost over the past five years:

Through a spokeswoman, Mr. Penske declined to be interviewed. But Gerry Byrne, the vice chairman of Penske Media Corporation, confirmed Mr. Penske’s plans for WWD’s digital and overseas expansion.

He declined to discuss, though, Mr. Penske’s comments about losses. “The realities were, or are, that the economic picture wasn’t very bright,” Mr. Byrne said. “And we like brightening economic pictures.”

With increased competition, WWD has its “brightening” work cut out. However, as a Fairchild-informed source told Holson, being clear of Condé Nast overhead and some related office expenses should help considerably.