The McClatchy Company, the publisher of newspapers from the Miami Herald to the Kansas City Star, is filing for Chapter 11 bankruptcy protection.
The company, which oversees 30 local newsrooms, will continue to operate as usual while the company restructures under Chapter 11 bankruptcy protection, the Associated Press reported.
The company started out of Sacramento in 1857 following the Gold Rush, creating a paper called the Sacramento Bee. McClatchy has taken out a loan of $50 million from Encina Business Credit and is using its usual operating cash flows for the company to stay afloat.
As part of its reorganization, the company expects to pull its publicly-traded listing on the New York Stock Exchange and go private.
The likely new owners, if the bankruptcy court accepts the plan, would be Chatham Asset Management LLC, which would lead the newspapers as a privately-held company.
McClatchy, which is still based in Sacramento, has suffered as readers have traded their traditional subscriptions to get their news online only.
The company has also been hit with a wave of defamation lawsuits. McClatchy is being sued by House Intelligence Committee ranking member Rep. Devin Nunes (R-CA) for defamation for targeting Nunes as he investigated Democrats’ involvement in the Russia campaign collusion hoax.