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.