Chain aims to sell papers in region

Journal Register Co. said yesterday it wants to sell a group of five small daily newspapers and 21 other publications in southeastern Massachusetts and Rhode Island, a portent of more change in New England's suburban media markets.

Speculation on a possible buyer quickly focused on a major new player in local news: GateHouse Media Inc.

Formed in the last year by New York venture capitalists, GateHouse established a big footprint on the region this year when it bought two newspaper chains ringing Boston.

``GateHouse will have an interest. GateHouse has let it be known they would like to buy more papers up there and strengthen their Boston cluster," said Larry Grimes , president of W.B. Grimes & Co., an investment banking firm specializing in media, based in Gaithersburg, Md.

GateHouse paid $230 million in June for four dailies and 93 weeklies and other newspapers that were held by Community Newspapers Co., which was owned by Boston Herald publisher Patrick J. Purcell . It also bought The Patriot Ledger of Quincy, the Enterprise of Brockton, and 23 weeklies and other south of Boston publications owned by Enterprise News Media LLC for $180 million.

GateHouse, headquartered in Fairport, N.Y., did not respond to a request for comment about Journal Register's plans.

Journal Register, of Yardley, Pa., owns 27 daily newspapers and 366 nondailies grouped in seven regions of the country. The daily community newspapers it placed on the block yesterday roughly surround Providence and represent all of the company's New England holdings outside Connecticut.

The Massachusetts papers being put up for sale are the Herald News of Fall River, with daily circulation of 22,930; and the Taunton Gazette , with daily circulation of 10,661. In Rhode Island, Journal Register wants to sell The Call , of Woonsocket, with a circulation of 14,131; The Times of Pawtucket, with circulation of 11,929; and the Kent County Daily Times in West Warwick, with 4,142. It is also offering a group of weekly papers in southern Rhode Island.

The Journal Register's chief executive, Robert M. Jelenic , cited an ``extremely challenging" environment in newspaper publishing and said he wants to focus more resources on building its on-line news business. On the New York Stock Exchange, Journal Register stock rose 3.7 percent yesterday, to close at $7 .

Profits at the properties for sale have underperformed the rest of the company's holdings by about 20 percent, Jelenic said. The papers being sold accounted for $39.9 million in revenue in the 12 months ending June 25, with operating cash flow of $8.9 million.

The Journal Register's Massachusetts and Rhode Island newspapers have tried to cover local news on a shoestring, said Linda Levin , chairwoman of the journalism department at the University of Rhode Island.

But Woonsocket, Pawtucket, and Fall River -- all old New England mill towns -- have suffered significant population losses in recent decades because of a decline in manufacturing. New residents moving into condominiums converted from old factories may not be reading the local papers, Levin said.

``They have tried to do what most chains are doing, operating with the smallest number of personnel they can and still get a paper out," she said. ``The papers run from not terribly good to pretty good."

Also yesterday, Dow Jones & Co. said it's seeking to sell or swap some of its Ottaway community newspapers in six different markets. The publisher of The Wall Street Journal has targeted papers in Danbury, Conn.; Oneonta, N.Y.; Plattsburg, N.Y.; Santa Cruz, Calif.; Sunbury, Pa.; and Traverse City, Mich.

Christopher Rowland can be reached at crowland@globe.com.