Journal Register files for Chapter 11 bankruptcy

Digital First Media CEO John Paton writes on his blog:

Journal Register Company has filed for Chapter 11 bankruptcy and will seek to implement a prompt sale.

We expect the auction and sale process to take about 90 days, and I am pleased to tell you the Company has a signed stalking horse bid for Journal Register Company from 21st CMH Acquisition Co., an affiliate of funds managed by Alden Global Capital LLC.

The filing will have no impact on day-to-day operations, Paton tells employees. “While I get this news may make some of you nervous, don’t let it.”

UPDATE: A reporter from a Journal Register paper writes:

This is the first any of us at my paper have heard of any financial problems in the company. Granted, the media industry is kinda messed up, so it’s not surprising. But, how do you not tell us anything til it happens? This is horseshit.

The only emails we ever get from corporate head-honcho John Paton (DFM and JRC) or someone at his level is some dumbass new VP of digital operations, regional editorships, social media crap or other guy who sits at a desk in NYC making several times what any of us make for doing half the work and just shoving stupid catch phrases down our throat about how we need to be “Digital First.”

You’ll see some stuff in there about how all our jobs and salaries are OK. But they forget to mention “for now.” Last July, when we were bought by Alden Global Capital, they said the same thing but then laid off three of our five editors within two months.

OUCH!

* Another tough step (jxpaton.wordpress.com) | Read the press release (journalregister.com)
* Paton in December: We’re shifting our rate of change into high gear (jimromenesko.com)

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