By Kevin McCauley
The Journal Register Co., which filed Chapter 11 in 2009, has again declared bankruptcy and plans to auction its small city/suburban newspaper assets.
Digital Media First, which manages JRC and medianews.com, says it has signed a “stalking horse bid” from a unit of Alden Global Capital. It expects the auction process to run about three months.
John Patton, CEO of DMF, said JRC’s transformation to a digital mode has made “solid progress,” but the program is hindered by high “legacy costs” associated with its print operation combined with a 19 percent drop in print ads since the first Chapter 11 filing.
He believes the current Chapter 11 filing will provide JRC the needed time to restructure its finances.
JRC says its news platforms in 10 states reach an audience of 21M people each month. Its newspapers include the News Herald (Willoughby, Ohio), The Trentonian, Macomb Daily (Mich.), Middletown Press (Conn.), New Haven Register, Oakland Press (Mich.) and The Record (Troy, N.Y.). |