The Swedish Kanal Lokal is to declare itself bankrupt after a dramatic fall in advertising revenue. The network operates stations in Stockholm, Östergötland, Göteborg and Skåne.
Up to 89 employees will be affected by the move that is likely to see the shutdown of the four-channel network once the relevant papers have been lodged with the courts.
Kanal Lokal began life in 1991 and was backed by Nordisk Media Partner, IT Provider Fund IV and the newspaper group Expressen. However, despite finding a place on the DTT network it struggled to gain capacity on the Com Hem cablenet.
The operation has always struggled to reach profitability and in 2007 made a loss of SEK78 million.
