Owner of Dearborn Paper Files For Bankruptcy
The Journal Register Co., owner of the Dearborn Press & Guide, and more than a dozen other papers in Michigan, including the Oakland Press and the Macomb Daily, filed Saturday for bankruptcy protection from its creditors — the third newspaper publisher to do so since December.
While the company blamed a slump in advertising for its financial woes, the Dearborn Press & Guide, part of the Heritage paper chain, appeared to be in slightly better shape in terms of overall advertising.
The Journal Register said it would cancel its stock, which has been trading as a penny stock now for sometime, and become a closely held company, owned by its lenders, under a proposed reorganization plan filed in U.S. Bankruptcy Court in New York.
The Journal Register listed debt of as much as $1 billion and assets of between $100 million and $500 million in Chapter 11 documents.
The bankruptcy filing is not expected to impact the Dearborn Press & Guide delivery, at least not in the foreseeable future. The paper recently closed its Dearborn offices and moved to Heritage headquarters in Southgate as part of a cost cutting effort.
The Journal Register follows the Tribune Co., owner of the Los Angles Times and Chicago Tribune newspapers, and the Minneapolis Star Tribune into bankruptcy.
Newspapers around the country are struggling because of slumping advertising sales and subscriptions, accelerated in part in trying to compete with online search engines, where these very newspapers give away their stories for free. Newspapers have been unable so far to find a way to make money on the Internet.
“With the increased competition from other forms of media and slumping advertising revenues, the downward pressure on newspaper earnings will likely remain intense in the near term,” James Hall, Journal Register CEO, in court papers.
February 22nd, 2009 at 10:22 am
Unfortunate sign of the times. Wonder how long it will be before our two Detroit dailies are forced to do the same?
February 22nd, 2009 at 10:56 am
I’ll take an inhand version of a newspaper anyday over an internet one. Their easier to read inhand and I can read it in more detail even faster.
Its sad that the a Dearborn paper now has its HQ’s in Southgate and even sadder that it is in trouble.
But the paper itself has gone done big time in quality since its early days and other than the frong page and a few editorials and opinions, it is not that much of an interestin read.
If inhome delivery ever ends they are done but this will not make me happy.
February 22nd, 2009 at 1:03 pm
Thanks for posting this, Said. None of the earlier stories made the link to the Dearborn paper. It again reminds us of the tough times all companies across Michigan are facing. Even the Dearborn Times Herald cut its twice weekly to now just once a week. This is one of those things where we residents are partially to blame. If we don’t buy a paper, they can’t stay open. Simple and yet sad all at the same time.
February 22nd, 2009 at 2:01 pm
I stopped buying the Press and Guide long ago. There just didn’t seem to be much news in it. I also just don’t have time to sit down and read the paper. Same reason I no longer get the News or Free Press. No time to read. If I really need to get updated I can go online. But then if those papers go out of business then that will go away, too. No simple answer for that part. I think since the Detroit newspaper strike from more than 10 years ago the papers have just fallen off of people’s radar.
February 22nd, 2009 at 2:08 pm
I’ve been trying to get to the Press and Guide website all day today, http://www.pressandguide.com and haven’t had any luck. Any idea what is going on with the website. Is it down or turned off?
February 22nd, 2009 at 6:06 pm
Once the Press & Guide moved out of Dearborn, they lost my allegiance and subscription. Good riddance.
February 22nd, 2009 at 7:58 pm
The Press and Guide certainly has it’s faults without adding in the terrible economy and young people who prefer to read it online. It also seems everything the paper has tried such as going more regional has not worked either. Most from Dearborn don’t read it anymore because their tired of reading about other cities and believe it should be a Dearborn only paper.
It was bad enough to see this paper move it’s offices to Southgate but if it goes belly up despite its faults, this will still be a shame for Dearborn.
February 23rd, 2009 at 8:13 am
Good Riddance to the P and G and that other rag the Times Herald. The writing in both papers resembles that of a junior high school newspaper. Most, if not all, of the reporters from both papers are too worrried about protecting their seven dollar an hour jobs kissing the backsides of politicians rather than truly reporting what goes on in their respective localities.
February 23rd, 2009 at 9:38 am
Bill you don’t know your head from a hole in the ground. Continue to read your blogs about little green men and blogs from people that can spend hours each day spewing off their nonsense, bigotry and innuendos.
God forbid that you should be put through the torture of reading a local paper that has contributed to Dearborn for ages with stories about what is happening all around you locally. Instead continue to read all this awesome national news because I’m sure you’ll be picked to be part of Obama’s auto czar team. Or one of his national or worldwide advisors as your right hand man OJ helps you find JFK’s real assassin.
Or even better Bill, go get a job with the Detroit papers cause you’re qualified to deliver papers the 3 days they won’t be after March.
February 23rd, 2009 at 10:20 am
Bill, don’t quit your job at Walmarts cleaning toilets.
February 23rd, 2009 at 11:00 am
Dearborn Idol:
You certainly sound like a true, P and G stooge! I’ll think of you when I have the P and G paper at the bottom of my birdcage.
February 23rd, 2009 at 1:17 pm
OK Curly.