Orange County Register publisher Freedom Communications declared Chapter 11 bankruptcy on Sunday in U.S. Bankruptcy Court in Santa Ana, California.
Chief Executive Richard Mirman and Orange County developer Mike Harrah aim to buy the company’s assets out of bankruptcy in a court-supervised auction. Freedom will continue to operate uninterrupted as Mirmran hopes to wrap the bankruptcy process in 60 to 90 days.
In a letter to staff, Mirman said losses under previous management were too big a challenge to overcome.
“Even with our recent success, the business is struggling to cover its financial obligations and is overloaded with debt,” he wrote.
Mirman took the helm after Aaron Kushner resigned in March as president of Freedom.
A year ago, Kushner resigned as publisher of the Orange County Register after admittedly failing on several initiatives, including the five-month run of the Los Angeles Register.
Kushner bought the Orange County Register in 2012 along with the Press Enterprise and other Freedom assets. He pivoted the company’s focus to local papers but revenue and circulation continued to bleed red ink.