Texas Paper Chain Fails

(CN) - American Community Newspapers is the seventh newspaper chain to file for bankruptcy since December, listing $40 million in debts. It publishes the Stillwater (Minn.) Gazette and Plano (Texas) Star Courier dailies, and dozens of weeklies in four states.

Industry watchers said that ACN, like many floundering newspapers, took on too much debt through acquisitions, then could not generate enough income to pay down the loans.

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