Both Brown Media Holdings Co. and the Brown Publishing Co., have recently filed for Chapter 11 bankruptcy relief and will sell their assets in 10 states including New York, Texas, South Carolina, Colorado and Wyoming, to a bidder chosen by the companies. Both publishing companies requested $2.5 million in financing to assist the companies in the bankruptcy process.
Both companies are family-owned and operated in Cincinnati and, between them, publish 15 daily newspapers, 32 weekly newspapers, 11 business-related publications and 41 free newspapers.
The bidder will, ultimately, assume a substantial portion of their liabilities. Brown Media and Publishing Co., have strong cash balances, good operating cash flows and financing in place, in order to finance the whole bankruptcy process.
The President and Chief Executive, Roy Brown said the filing was difficult for the family and shareholders alike, and was done so the businesses are “best positioned to prosper in the years ahead. Over the past two years, our employees have battled the effects of an unprecedented economic and financial crisis with inspirational grit and determination,” Brown said. “It is with their interests pre-eminently in mind that we have pursued this course.”
Nowadays, since so many newspapers rely on advertising as their main source of income, newspapers have been struggling to compete with the Internet. It has been reported over and over—newspapers’ subscriptions and their readers are dropping. In fact, these two companies, in addition to being added to a long list of publishing companies seeking bankruptcy protection, are a sign of our times.