NEW SMYRNA BEACH -- The Observer newspaper returned today under new ownership as a free weekly publication. News-Journal Corp., meanwhile continues to cut back its workforce as its ownership prepares for a possible sale later in the year.
The Observer is now owned by Robert and Michelle Lott under Coronado Beach Publishing. Robert Lott is proprietor of Lott Financial Services and is president-elect of the Southeast Volusia Chamber of Commerce, a member of the Southeast Volusia Hospital District Board that governs Bert Fish Hospital and is chairman of the Edgewater Economic Development Board. The Observer closed its doors in June and the Daytona Beach News-Journal closed its Canal Street bureau that same month, ceasing publication of its regional supplement, The Daily Journal.
The News-Journal also closed its bureaus in DeLand, Deltona and Bunnell and said goodbye to 99 employees after losing a series of appeals of a $129 million civil verdict in federal court to its minority partner, Cox Enterprises of Atlanta over the worth of its stocks. Cox wanted out because the Daytona Beach newspaper spent $13 million in naming rights for the News-Journal Center, a $29 million lively arts facility on Beach Street.
The paper on Tuesday reported it had cut 41 more jobs and the following day announced 23 others, including positions at its Pennysaver operations. News-Journal Corp. announced its workforce was down to 587.
The editors of the News-Journal wrote a front page notice to readers on Sept. 10, in response to complaints about its shrinking newshold: "We recognize that an attempt last week to bring The News-Journal's news and ad space balance closer to newspaper industry norms went too far. Many readers complained about scaled back coverage. Starting with today's edition, readers will see space restored in the daily paper for more local, state, sports and world news coverage. Papers also will include at least a full page each day for business news and a full page of opinion pieces and readers' letters. The newspaper industry is facing economic challenges, and The News-Journal must continue to look for ways to reduce operating costs. Shortchanging readers is not one we will pursue further."
The News-Journal provides daily news of Southeast Volusia in its 1-star edition.
The Observer says its newspaper is being delivered free of charge to driveways of residents and businesses in New Smyrna Beach, Edgewater, Oak Hill, Samsula and other parts of Southeast Volusia, with its new offices on Canal Street. Hometown News, based in Fort Pierce, also delivers a weekly Southeast Volusia version of its publication with drops on driveways from offices in the Sunshine Mall in South Daytona. The Pennysaver, a free shopper, is also dropped on local driveways each week as well.
Prior to June, the Observer had published either as a weekly or daily since 1913. The Lotts purchased the naming rights to the Observer and its archives for an undisclosed price from Indiana-based Horizon Publications. Michelle Lott is listed as the president of the new Observer. Robert Burns returns as editor.
NSBNews.net, established April 11, provides daily online community journalism coverage of greater New Smyrna Beach as well as feeds on national and world events as they unfold.