The Orange Country Register recently ended its delivery arrangement with the Los Angeles Times which has apparently triggered a flood of complaints from Register readers.
Chip Yost reports for the KTLA 5 News at 6 on Monday, Oct. 6, 2014.
The Los Angeles Times issued the following statement regarding the distribution agreement with the OCR:
The current situation is the direct result of the actions of the Orange County Register.
The Los Angeles Times has distributed the Orange County Register since 2009 and has done a good job, consistently earning performance incentives for its work. But OCR has, for more than a year and a half, been consistently late in paying money it owes The Times for services rendered.
OCR owes The Times more than $3.5 million plus additional sums for the remainder of the contract. The Times intends to pursue all remedies to receive the monies it is owed.
- In April 2013, OCR first missed a payment deadline under its agreement with The Times.
- By February 2014, the outstanding amount past due had grown to almost $2 million and, by mid-May, the past due amount was more than $2.5 million.
- In late May, OCR agreed to a payment plan with The Times whereby OCR would pay down past due amounts.
- In June, OCR made one payment on the plan. Since then, it has made no further payments on the plan.
- Despite OCR’s failure to pay, The Times has throughout continued to perform services for OCR in a timely and effective manner and has complied with the contract.
- In September, The Times formally notified OCR it was in default and had 30 days to remedy its default and pay The Times the money owed.
- Later in September, OCR began taking out ads seeking new carriers.
- On October 4, OCR unilaterally chose to begin using alternative vendors to distribute the Orange County Register to customers, even though it had no right to do so and despite the continued willingness by The Times to serve these customers. The contract between OCR and The Times provided for The Times to be the exclusive distributor of the OCR through January 24, 2015. Any OCR customers’ inconvenience is due to the actions of OCR.
- On October 6, The Times notified OCR it was terminating the agreement pursuant to its terms because OCR failed to pay The Times amounts owed.
- The issues at OCR will have no impact on Los Angeles Times subscribers in Orange County as they will continue to have their paper delivered by the same organization, which has served them well.