The Toronto Star has replaced its publisher and editor in chief and appointed two veterans of the company to take over the roles.

Out immediately as publisher is Michael Goldbloom, who had been in the job since 2003. He has been replaced by Jagoda Pike, a former publisher of the Hamilton Spectator.

Torstar three-month trading

Pike, 46, was also appointed president of the new Star Media Group, which will include the Star, Torstar's interest in the Metro commuter paper and Sing Tao Daily, the Eye Weekly entertainment paper, Toronto Real Estate News and several other ventures.

Taking over as editor in chief is Fred Kuntz, who replaces Giles Gherson. Kuntz is the current publisher of Grand River Valley Newspapers, which owns the Record of Waterloo Region and the Guelph Mercury.

Kuntz, 49, will assume his new job on Oct. 23, the company said.

Kuntz began at the Star as a copy editor about 26 years ago and worked his way up through the business and city sections before becoming assistant managing editor.

The changes announced Monday come as the newspaper sector has faced growing challenges, including declining readership and growing competition for advertising dollars from internet competitors.

Revenues down

In its most recent quarterly financial report, Torstar said its net income fell 29 per cent and revenues slipped three per cent.

Torstar chief executive officer Robert Prichard called it a "difficult quarter" for the company, citing lower-than-expected ad revenues and strong newspaper competition in Toronto.

Torstar's share price has also languished.

Toronto Life editor John Macfarlane thinks that's the main reason for the shakeup. "The stock is going nowhere and this has obviously spooked the owners," he told CBC News Business. 

But Macfarlane also noted that some of the Toronto Star's problems are faced by many other North American papers.

"It's a kind of perfect storm for the newspaper industry," he said. "First they lost department store advertising in the '90s and now the internet has come along and it's stealing classified." 

Shares of Torstar dipped four cents on Tuesday to end at $19.33 on the TSX.