Publisher McClatchy files for bankruptcy protection.
McClatchy, the publisher of the the Miami Herald, The Kansas City Star, and 28 other newspapers in 14 states across the US, has filed for Chapter 11 bankruptcy, according to reports from Morning Brew.
NBC News also adds that the publisher’s 30 local newsrooms will continue to operate as usual as McClatchy Co. reorganizes under Chapter 11 bankruptcy protection after cracking under the weight of pension obligations it handed out in more abundant times. According to Chairman Kevin McClatchy, the company has 10 pensioners for every active employee. The company expects to pull its listing from the New York Stock Exchange as a publicly traded company, and go private.
The truth is paper companies haven’t adjusted to the seismic shift in news consumption brought by the system of tubes you’re using to read this newsletter, according to The Washington Post. In the particular case of McClatchy, it has suffered as readers give up traditional subscriptions and get news online, and like other publishers, it’s tried to follow them there.