A community publishing company in western New York state suffered heavy losses after last winter’s run of snowstorms and has filed for bankruptcy protection, the Wall Street Journal has reported.
CEO James Austin told the Journal that the chain of 24 free-distribution newspapers — weeklies and shoppers — had been operating profitably. But the 2014 Snowvember storms and more that followed disrupted delivery and ad sales and prevented many of his 100 employees from getting to work.
The company, Community Papers of Western New York, suffered $700,000 in losses and now is $1 million in debt according to the filing.
If the court crafts a settlement plan that satisfies creditors, the company can continue in business without the debt overhang.