McClatchy, Major Local News Publisher, Files for Bankruptcy

McClatchy, the publisher that operates The Miami Herald, The Sacramento Bee and other newspapers, filed for bankruptcy protection, another sign of a collapsing local news industry. In a Chapter 11 filing in New York, the company, one of the largest news publishers in the US, said it planned to restructure its pension obligations and the more than $700 million in debt it has struggled with for years as it tried to strengthen its digital business. It said its 30 newsrooms in 14 states would continue operating as usual during the case.The hedge fund Chatham Asset Management, its longtime creditor, would operate McClatchy, a 163-year-old family-controlled business, as a private company, under the plan laid out in the filing.