The Wall Street Journal is reporting Freedom Communications will file for bankruptcy this week. Freedom is the parent company of the OC Register and Saddleback Valley News. The Freedom Board has attributed the newspaper’s fate to falling circulation and declining ad revenue.While I was in college I threw an early morning route for the Register in the Turtle Rock area of Irvine. Back then Irvine was still a pretty small town and I had about 200 customers in that area.
The Register announced in June it might seek bankruptcy protection due to $700 million in outstanding debt which had to be serviced by the end of 2009. Last Spring Standard and Poor’s dropped Freedom’s financial rating to CCC-, two grades above bankruptcy, and subsequently withdrew any rating at Freedom’s request.
The debt arose in 2004 when the Company borrowed cash to buy family interests belonging the relatives of the newspaper’s founder, R.C. Boiles. The family still holds control on the Board of Directors, but a bankruptcy will likely result in a transfer of control to creditors. It is unclear whether there are any potential buyers waiting in the wings.
Recently the Register reported it had entered an agreement for the LA Times circulation department to begin delivering the Register to subscribers. The delivery changeover will begin in September.
The LA Times guy probably had 400 and I used to see him from time to time as I was running my route. I had a VW Bug with my papers. He had a station wagon.
The world is quickly tiring of printed news because by the time you get it the story's already old. I'll be surprised if many papers are still around in 5 years.
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1 comment:
So what, another liberal rag down the drain, right?
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