American Community Newspapers Inc. has declared bankruptcy. The company owns Stillwater Gazette and other metro newspapers, and the papers are up for sale. The company shut down a weekly newspaper in Inver Grove Heights in February. When asked about consequences of the bankruptcy, spokesman Joe LoBello said there will be "no impact on day-to-day operations." But LoBello said the newspapers will be auctioned off by the end of the month.

American Community Newspapers Inc. (ACN) has filed for bankruptcy protection, citing "an unprecedented and severe decline in advertising revenue." In its filing, the company lists assets in the range of $50 million to $100 million and debts totaling about $107 million. The company said in a news release that it planned to continue normal business operations. The filing hinted that ACN planned to sell its assets, without providing additional details. A company spokesman could not be reached for comments. Chairman and Chief Executive, Gene Carr said ACN didn't have the cash flow to support its capital structure and planned to sell assets to reduce debt.

American Community Newspapers Inc. said that on July 1, 2008, the company had retained an advisor to provide financial advisory services. The advisors are assisting the Company in exploring strategic alternatives relating to, among other things restructuring its long-term debt. Any restructuring that reduces the Company's outstanding debt is likely to have a substantial impact on its capital structure, including but not limited to its common equity.