McClatchy Co., which owns 31 daily newspapers across the country, has filed for bankruptcy and will likely be taken over by Chatham Asset Management, a New Jersey-based hedge fund.
This appears to end the control of the McClatchy family over the nation’s second largest daily newspaper chain, which owns the Kansas City Star, the Miami Herald and the Sacramento Bee.
None of the McClatchy newspapers are in New Jersey.
The chain is expected to scale back their print editions and focus on digital.
“McClatchy’s Plan provides a resolution to legacy debt and pension obligations while maximizing outcomes for customers and other stakeholders,” said McClatchy CEO Craig Forman. “When local media suffers in the face of industry challenges, communities suffer: polarization grows, civic connections fray and borrowing costs rise for local governments. We are moving with speed and focus to benefit all our stakeholders and our communities.”