Monday, May 04, 2009

Sun Gazette Parent Co. Files Chap. 11

American Community Newspapers, Inc., announced that it voluntarily entered Chapter 11 reorganization on April 28. The heavily-leveraged, Addison, Texas-based company which owns northern Virginia's Sun Gazette, Middleburg Life and Leesburg Today newspapers among others nationwide, was delisted from public stock exchanges last fall, and recently, the stock was trading for pennies per share privately.

"ACN will continue to operate its businesses, during the reorganization process. There will be no change in the Company's day-to-day operating activity and its newspapers will continue to serve their local communities, readers and advertisers without interruption," ACN said in a statement on April 28.

“A difficult economic environment and weak advertising market have created a number of challenges for our industry and our company,” said the company Chairman, Gene Carr, in the statement.

In separate statements, the company wrote that it would consider selling papers, but closing them is not likely, and that the restructuring should not affect readership or advertising clients.

Within 90 days, the company plans to pull out of the reorganization stronger their statements say.

The Sun Gazette nearby covers the northern Virginia communities of Arlington and northern Fairfax counties.

Related sites…
  • American Community Newspapers press release about the filing.
  • Leesburg Today's coverage of the story (Leesburg Today is a sister paper to the Sun Gazette).
  • A little history on the troubles

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