News Media Corp.’s closure affects northern Illinois community newspapers

Eight northern Illinois newspapers owned by a Rochelle company have closed their doors after the company abruptly ceased operations Wednesday, Aug. 6.

News Media Corp.‘s decision to end operations has led to the closure of the Rochelle News-Leader, Ogle County LIFE, Ashton Gazette, Amboy News, Mendota Reporter and three other northern Illinois newspapers, as well as newspapers in Arizona, South Dakota, Nebraska and Wyoming.

Employees were informed of the closure Wednesday, when they were notified by the company’s CEO, JJ Tompkins, through an email that their employment and health care coverage was ending immediately.

“Unfortunately, due to financial challenges, a significant economic downturn impacting our industry, revenue losses and increasing expenses, and the recent failure of an attempt to sell the company as a going concern, we have reached a point where continuing business is no longer feasible,” according to the email.

The note also left it ambiguous as to whether employees would receive their final paychecks, saying, “We will make all reasonable efforts to pay you all remaining compensation you have earned as soon as possible.”

Tompkins did not immediately respond to Shaw Local’s request for comment.

“This is a big impact,” Rochelle Mayor John Bearrows said. “I’m concerned for all our residents and all the folks in all the taxing districts.”

All area taxing districts, including schools, townships and local governments, are required by Illinois law to issue public notices for items such as budgets, taxes, zoning and property assessments, and court-related information.

For residents, “transparency is ultra important,” Bearrows said.

Many Rochelle residents don’t go online, and they rely on their local paper, he said.

“I hate to see it. Nobody really saw it coming,” Bearrows said.

He said he hopes somebody sets up another newspaper in Rochelle because the city “needs news,” and it “needs a local paper.”