The future of the New Haven Register could be called into question, after its parent company filed for bankruptcy.
The Pennsylvania based Journal Register Company is the third major media company to file for bankruptcy protection in the last three months.
JRC has blamed falling advertising sales for the crisis, saying revenue is down more than 20% since 2006. But many observers say the company’s huge debt load has contributed to its downfall – its reported debts exceed its assets by almost $100m dollars. Journal Register went into debt as it bought up many small newspapers around the country during the 1990s and early in this decade.
The company owns 19 dailies in addition to the New Haven Register, and around 300 other publications. Late last year the company closed several weeklies in Connecticut, and sold off the Bristol Press and New Britain Herald, after a last minute buyer came forward.
JRC’s bankers have agreed to a reorganization plan, which would cancel its stock, and give control to its lenders. Executives say they don’t anticipate any business interruptions as it works through the bankruptcy.