Local newspapers' publisher cites lower ad revenue in bankruptcy petition

The company’s Ohio newspapers include

Brown Publishing Co. cited significant decreases in advertising revenue in late 2008 and early 2009 as a primary reason it filed petitions Friday, April 30, for Chapter 11 protection in U.S. Bankruptcy Court.

The company has said a “stalking horse” bidder will buy all its assets in Ohio, New York, Texas, South Carolina, Illinois, Iowa, Colorado, Utah, Arizona and Wyoming.

Joel Dempsey, Brown’s vice president/general counsel, on Monday didn’t return phone calls seeking comment.

According to an affidavit filed Saturday by Roy Brown, company president/CEO:

Brown’s largest revenue category is local retail advertising. The decline in retail sales — particularly among Brown’s community newspapers in Ohio — has hurt the company. Many of those newspapers are in the Dayton area.

A significant portion of Brown’s advertising revenue also was exposed to an ailing real estate market.

The unaudited value of the company’s consolidated assets was $94.05 million as of March 31. Value of unaudited liabilities was $104.6 million. Brown is in default under both its first and second lien credit agreements.

Brown has 811 employees, 687 of them full-time.

Contact this reporter at (937) 225-7457 or bsutherly@DaytonDailyNews.com.