The shutdown of the Californian Pennysaver this past weekend ousted thousands of restaurants, auto care shops, hair salons, dry cleaners, and countless other small businesses from their community-oriented discount efforts. When the most resounding fixture in regional marketing closed their doors for the final time last Friday evening, ma and pa shops lost their primary medium to engage offline with the local public. With the company reaching 11 million people and reportedly making over $1 million in ad revenue every week, business owners and Pennysaver employees were sent reeling by the closure. But it didn’t blindside everyone.
With print classified ads losing revenue in the past few years, the Pennysaver desistance didn’t surprise media analysts. And Pennysaver’s lender, OpenGate Capital, the company that famously acquired TV Guide for $1, has a plainspoken track record of buying out “underperforming” businesses.Read More