Fairfield County Business Journal - 030413

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FAIRFIELD COUNTY

BUSINESS JOURNAL YOUR ONLY SOURCE FOR REGIONAL BUSINESS NEWS | westfaironline.com

FCBJ this week

March 4, 2013 | VOL. 49, No. 9

DIGITAL SETBACK

FIVE NURSING HOMES run by HealthBridge Management were granted an expedited appeal in their lawsuit against 600 union employees … 2

» Digital, page 6

» Cost, page 6

LAYOFFS EXPECTED IN SALE OF PuBLISHER BY PATRICK GALLAGHER pgallagher@westfairinc.com

A

fter declaring bankruptcy twice in three years, the publisher of Connecticut Magazine and three Connecticut daily newspapers will be sold this spring with hundreds of jobs at risk of being permanently eliminated. The demise of Journal Register Co., a Yardley, Pa., firm that publishes 18 daily newspapers nationwide, represents a cautionary tale for media companies rushing to transition from print to digital platforms, experts say. Journal Register Co., which is managed by Digital First Media and owned by Alden Global Capital L.L.C., a New York City investment firm, filed for Chapter 11

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jbissell@westfairinc.com

bankruptcy protection Sept. 5, 2012, and subsequently announced plans to auction its assets. Another Alden Global subsidiary, 21st CMH Acquisition Co., submitted the sole bid and on Dec. 19 announced it had reached a deal to acquire the assets of Journal Register for about $122.5 million. With the bid awaiting court approval, Journal Register gave notice to the state Department of Labor late last month that the company would cease operations around April 17 and that all 285 of its Connecticut employees would be laid off upon the finalization of the sale. “We have asked the buyer to operate the business using substantially all of our current employees,” the notice, required

A NEW REPORT shows businesses with fewer than five employees were the only source of job growth in Connecticut in 2010 … 11

MEDIA PARTNER

BY JENNIFER BISSELL

AT A TIME OF TIGHT budgets, government officials say cuts and streaming efforts are an absolute must. But when it comes to one proposal to merge five state advocacy agencies into a Commission on Citizen Advocacy and a second proposal that would eliminate the state Commission on Aging, representatives say the costs would outweigh any savings. “At this point I’m not sure what else we can do to be effective, other than be left alone,” said Teresa Younger, executive director of the Permanent Commission on the Status of Women (PCSW), one of the independent state agencies Gov. Dannel P. Malloy has proposed to consolidate in his budget for the 2014 and 2015 fiscal years. “We are one of the oldest, most effective commissions in the country,” Younger said. “We’ve been at the forefront of what other states look at.” Under the proposal, PCSW, along with the commissions for Asian Pacific American Affairs, African American Affairs, Children, and Latino and Puerto Rican Affairs would be consolidated into the Commission on Citizen Advocacy. The move would save $800,000 annually and is one of five government streaming efforts aimed at saving $11.2 million over the two years covered by the biennial budget proposal currently being debated by the Connecticut General Assembly. The Commission on Citizen Advocacy would have about 17 full-time positions, absorbing some — but not all — of the current employees of the five agencies in question.

THE GOVERNOR was in Stamford to pitch his “Next Generation Connecticut” proposal to invest more than $1.5 billion in UConn over the next decade … 5

MARKET STUDIES show quick response code use among U.S. adults nearly quadrupled from 2011 to 2012 … 15

COST-CUTTING PROPOSALS UNDER FIRE

BIDEN, IN DANBURY, WARNS OF ‘MORAL PRICE’ OF INACTION ON GUN REGULATIONS


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