Daily Público files for bankruptcy protection

Mediapubli, publisher of the Spanish daily newspaper Público, filed for bankruptcy protection on Tuesday with a Mercantile Court in Barcelona, announced Jaume Roures, the top executive at the holding company Mediapro.

The company blames "the intensity of the crisis affecting the advertising market, the profound transformation that the newspaper industry is going through, and difficulties in seeking financing" as the major culprits for the daily's economic problems, according to a statement.

Roures said the bankruptcy filing would allow the company to "safeguard the interests of all the parties affected in the best manner."

The voluntarily filing means the newspaper's management will continue to run the publication, as well as head off any preventive embargo that its creditors may choose to seek. At the same time, all of Público's debts will be temporarily frozen except for the tax deductions and social security payments for its employees.

Público, which began publishing in September 2007, laid off nine percent of its workforce in November and made plans to reduce salaries. According to figures released by the Office of Circulation Justification, the newspaper in November reported a daily circulation of 82,691 copies.

Since its first issue, the newspaper has been looking for ways to cut costs and make adjustments to its workforce.