This afternoon we are issuing the following press release:
BROOKLYN, N.Y., Feb. 19, 2009 - The financially troubled small press publisher Dumbo Books of Brooklyn, in what insiders describe as a last-ditch effort to avoid filing for bankruptcy, today announced that it was acquiring the California Newspaper Chain in a stock swap valued at an undisclosed amount.
Dumbo Books is a publisher of literary books headquartered in Brooklyn. The California Newspaper Chain's properties include its flagship Los Angeles World-Telegram & Star, The San Jose Journal-American, The Phoenix Citizen Record-Examiner and The Miami Globe-Democrat.
"We believe that this purchase will allow us a little breathing room with our creditors in this difficult economic climate," said Dumbo Books chief financial officer Richard Grayson. "It will give us added streams of revenue."
Shares of both companies closed lower yesterday.