Regional Newspaper Publisher McClatchy Files For Bankruptcy
The newspaper group that owns the Modesto Bee, Merced Sun Star, Sacramento Bee and Fresno Bee has filed for Chapter 11 bankruptcy protection.
McClatchy operates 30 newspapers across 14 states. The Associated Press reports that the publisher’s origins date back to 1857 when it began printing a paper in Sacramento following the Gold Rush. That newspaper eventually became the Sacramento Bee.
McClatchy has filed a plan in federal bankruptcy court. Pending acceptance, a new ownership group will be led by Chatham Asset Management LLC. The company hopes to restructure its debts and shed pension obligations during the reorganization.
McClatchy reports that between 2006-2018 its advertising revenue fell by 80-percent and the daily print circulation dropped by nearly 60-percent.