Virginia Newspaper Publisher Files for Bankruptcy

The publisher of Fredericksburg, Va., newspaper the Free Lance-Star filed for Chapter 11 bankruptcy protection Thursday.

Fittingly, the newspaper itself was the first to report the news of Free Lance-Star Publishing Co.’s bankruptcy, which was filed in the U.S. Bankruptcy Court in Richmond, Va.

In court papers, lawyers for the family-owned company blamed its troubles on the usual culprits: declining circulation and revenues. Layoffs followed, as did efforts to restructure its loan debt, to no avail. A unit of investment firm Sandton Capital Partners purchased the debt, putting it in position to direct the company to put itself up for sale in Chapter 11 with Sandton as a possible buyer.

First published in 1885, the Free Lance later merged with the Daily Star to create a single newspaper. The Rowe family has been at the publisher’s helm since 1926.

In addition to the newspaper, the publisher’s other assets include four radio stations. Its assets are worth $50 million to $100 million and debts fall within the same range, according to its Chapter 11 petition.

Write to Jacqueline Palank at [email protected]. Follow her on Twitter at @PalankJ.