Parent company of Dan's Papers files for bankruptcy

The parent company of the Hamptons-based weekly Dan's Papers has filed for reorganization under federal bankruptcy proceedings.

There was no indication on the publication's website by midafternoon Monday that it would stop publishing, and telephones were still being answered.

Dan's Papers referred questions Monday to its corporate parent, Brown Publishing Inc. of Ohio, which did not respond to a message requesting comment.

Brown Publishing said in court papers that a decline in real estate advertising was a major cause of its problems, Bloomberg News reported.

The court records do not say how great a role the downturn in real estate sales on the East End of Long Island played in the parent company's financial problems.

The company is privately held. It filed April 30 in federal bankruptcy court in Central Islip, with papers signed by Roy E. Brown, the company president.

On April 2 the paper, which is marking its 50th anniversary this year, announced that it would no longer be free in Manhattan and parts of Brooklyn where it is distributed. Newsstand prices there are now $2.

Brown and 14 affiliates had assets of $94.1 million and $104.6 million in debts as of March 31, Bloomberg News reported.

Brown's affiliates include Delaware Gazette Co., Texas Business News Llc and Utah Business Publishers Llc. The company publishes 15 daily papers, 32 weekly newspapers, 11 business publications, 41 free publications and 51 newspapers or niche websites, Bloomberg reported.