The publisher of theSacramento Bee, the Miami Herald, The Kansas City Star and dozens of other newspapers across the country has filed for bankruptcy protection.
The newspaper industry has been devastated by changing technology that has sent the vast majority of people online in search of news. While McClatchy and others have pushed digital operations aggressively, advertising dollars have continued to flow toward internet giants like Facebook and Google.
McClatchy Co.'s 30 newsrooms, including The Charlotte Observer, The News & Observer in Raleigh, and The Star-Telegram in Fort Worth, will continue to operate as usual as the publisher reorganizes under Chapter 11 bankruptcy protection.
The publisher's origins date to 1857 when it first began publishing a four-page paper in Sacramento, California, following the California Gold Rush. That paper became The Sacramento Bee.
McClatchy has received $50 million in financing from Encina Business Credit that will enable it to maintain current operations for the company, which is still based in Sacramento.
McClatchy has suffered as readers give up traditional subscriptions and get news online and like other publishers, it's tried to follow them there.
With files from the Associated Press
Ken Doctor, media analyst who focuses on the transformation of consumer media in the digital age; author of “Newsonomics: Twelve New Trends That Will Shape the News You Get” (St. Martin’s Press, 2010)