Journal Register Co., whose holdings include the weekly Westport Minuteman newspaper, is back in bankruptcy protection, three years after emerging from a previous Chapter 11 filing.
The latest filing, in U.S. Bankruptcy Court in New York on Wednesday, was caused by continuing sharp declines in print revenue combined with growing pension liabilities, a legacy from the days when it was much bigger, the company said.
Journal Register has 18 newspapers and other media properties in 10 states that also include the Fairfield Minuteman and the New Haven Register. The company said it expects normal operations to continue during the Chapter 11 reorganization.
Alden Global Capital, a New York hedge fund, acquired Journal Register last year. An Alden affiliate, Digital First Media, currently operates Journal Register. Its chief executive, John Paton, has become a vocal advocate of newspapers shifting their focus from print to digital and has required all company reporters to carry digital cameras and recorders.
An Alden affiliate has posted an initial bid to buy the company at a bankruptcy auction expected within 90 days. Alden has been investing in distress sales of various newspaper and media concerns in recent years.
William Higginson, Journal Register’s executive vice president of operations, in a court filing said the bankruptcy will reduce the company’s debt burden, and leave it “better able to compete and to weather the current stresses in the industry.”
Journal Register said it has seen a 52 percent increase since 2009 in lease, tax, trade and pension obligations.
