Patrick Purcell, the owner of Boston Herald Inc. has filed for Chapter 11 bankruptcy protection in the U.S. Court of Delaware and has kicked off a sale process for the newspaper starting with a $5 million offer from GateHouse Media Inc., The Wall Street Journal reported Dec. 8, citing court documents.
The company cited the rise of alternative news sources and declining advertising revenue in print media for its move to seek bankruptcy protection.
The $5 million from GateHouse comprises about $4.5 million in cash, and the balance would be the assumption of certain liabilities, namely employee benefits.
The offer remains subject to court approval.
According to court papers, Boston Herald expects to book a loss of nearly $3 million on total revenue of about $33.8 million for its fiscal year ending July 1, 2018.
