More Newspaper Layoffs Likely to Follow Journal-Register's Sale
This might sound a little familiar: after filing for bankruptcy for the second time in three years, media company Journal Register Co. is being sold to an affiliate of its current owner. From the Detroit News:
The Journal Register Co., which publishes newspapers in 10 states including Michigan, and is owned by a New York hedge fund, is expected to be sold in mid-April to a company controlled by the same fund.
Journal Register Co. employees, including 844 here, received notification from chief Human Resources officer Robert Monteleone this week that said the company "will cease all of its business operations and the employment of all employees will cease" on or around April 17, when its sale to 21st CMH Acquisition Co. becomes final. Both are owned by Alden Global Capital.
The newspaper company alerted the state of potential layoffs; the filing was made public Thursday.
Lately, Alden has been specializing in "distress sales" of newspapers. JRC has already struck a deal to outsource its national news, so this move is just another step in the direction of consolidating the newspaper industry.