Posted by Amina Isakovic
Written by Nat Worden
Bankruptcies are piling up in the newspaper industry as debt-strapped publishers acknowledge that their businesses are deteriorating faster and for longer than they previously anticipated.
The bankruptcy process will allow newspaper companies to readjust their debts and try different business models as the media industry undergoes a secular transformation amid a global financial crisis. The process is likely to result in leaner newspapers and, possibly, fewer daily newspapers.
"Many of the underlying newspaper businesses at these companies have a future after a restructuring in bankruptcy, but we are going to see some big newspapers fold," said Lauren Rich Fine, a former newspaper analyst with Merrill Lynch who is now a professor at Kent State University and director of research with ContentNext Media Inc. "There are too many newspapers in some markets, and they can't all survive in this environment."
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