GateHouse Media, Inc. and numerous affiliates filed for Chapter 11 today at the United States Bankruptcy Court in Wilmington, Delaware. The Fairport, New York-based publisher's Chapter 11 Petition lists approximately $434 million in assets and $1.28 million in debts.
According to the Debtors' Declaration, the Debtors operate in 21 states with core products including 78 daily newspapers, 235 weekly newspapers, 91 shoppers, 343 locally focused websites, 313 mobile sites and six yellow page directories. Revenues in 2012 were approximately $491 million. The Debtors employ 4361 people. GateHouse Media, Inc. attributes the Chapter 11 filing to the global economic recession and "the increasing competition from the internet as a news source and advertising medium".
According to the Debtors' Plan of Reorganization, equity holders of GateHouse Media will have their equity interests cancelled and receive their pro rata share of New Media Warrants.