The second-largest local news company in the country filed for bankruptcy in a move that will end more than 160 years of familial control over the organization.
McClatchy Co. filed for Chapter 11 bankruptcy on Thursday, which, if accepted by the court, will allow the company to restructure and eliminate some of its debt before handing leadership over to creditors who support journalism. The new ownership will go to hedge fund Catham Asset LLC, which plans to privatize the company.
“While this is obviously a sad milestone after 163 years of family control, McClatchy remains a strong operating company and committed to essential local news and information,” Kevin McClatchy, chairman of the company, said. “While we tried hard to avoid this step, there’s no question that the scale of our 75-year-old pension plan — with 10 pensioners for every single active employee — is a reflection of another economic era.”
Some of McClatchy’s newspapers include the Kansas City Star, the Miami Herald, the Charlotte Observer, the Fort Worth Star-Telegram, and the Sacramento Bee. The company has obtained the funding necessary to keep the operation standing as it goes through bankruptcy.
From 2016-2018, McClatchy’s ad revenue fell by 80% while its daily print circulation dropped by more than 50%.
