POTTSTOWN PA – Journal Register Company, the parent company of The (Pottstown PA) Mercury newspaper, announced Wednesday (Sept. 5, 2012) it filed voluntary petitions for Chapter 11 bankruptcy in U.S. Bankruptcy Court and will seek to be acquired by another owner in an auction that could take 90 days. It represents the second time in three years Journal Register has sought bankruptcy protection.
The Mercury’s daily operations are expected to continue without interruption.
Journal Register is one of three companies operated by Digital First Media, a news conglomerate, but the only one of them involved in the bankruptcy action. Its court filing allows the company to continue operating while the sale is in progress.
Digital First Media CEO John Paton said Journal Register’s print advertising revenue, which accounts for half of the company’s overall revenue, declined 19 percent between 2009 and 2011. At the same time, Paton said, the company’s “legacy” costs of items like pension liabilities, as well as heavy investments to grow its online assets and audience, affected its expenses.
Besides The Mercury, Journal Register locally operates the Berks-Mont News in Boyertown, The Phoenix in Phoenixville, the Spring-Ford Reporter and Valley Item serving Royersford and Schwenksville, The Times Herald in Norristown, The Reporter in Lansdale, and the Daily Local News in West Chester.
- Journal Register Co. files for Ch. 11, again (Knight Digital Media Center)
- Digital First Media Announces Journal Register Company Files for Chapter 11 (Journal Register)