Another Newspaper Company Goes Bust
Another one down, more to come...
It's worth noting that these early busts can be tied directly to a management decision--specifically the decision to load up on debt. These companies would have survived a lot longer if they hadn't borrowed so much money.
Shira Ovide, Wall Street Journal: Journal Register Co., the debt-strapped owner of the New Haven Register and 19 other daily papers, filed for Chapter 11 bankruptcy protection Saturday, at least the third newspaper publisher to tip into bankruptcy court in recent months.
Journal Register has been plagued for more than a year by an unsustainable level of borrowing, made worse by an industry-wide plunge in revenue. Journal Register's woes stem from an acquisition binge, the pinnacle of which was a 2004 deal to buy a chain of Michigan newspapers for more than $400 million...
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