Heartland Publications Files for Bankruptcy

"We have built Heartland Publications into one of the best-performing newspaper companies in the country. And we have made great strides to reduce costs as we made investments into online and other new products and revenue streams," stated Michael C. Bush, president and chief executive officer, in a statement on the company's website. "The only problem we have not been able to fix is our balance sheet, which was not predicated on either a severe recession or substantial reduction in newspaper valuations. With the support of our senior lenders, we have voluntarily entered Chapter 11 as the most expeditious way to achieve the kind of balance sheet we will need for future growth. Once we have successfully delevered the company, we will seek new opportunities to grow Heartland in current and new markets."

The company said it will continue to operate normally, and noted that subscribers and advertisers will not be affected. The company also does not have any layoffs planned as a result of the bankruptcy filing.

Heartland joins a long line of newspaper publishers to descend into bankruptcy over the past two years: The Tribune Co., Philadelphia Newspapers LLC, the Star-Tribune, Journal Register Co. and the Sun-Times Media Group.